PGT to Acquire 75 Percent Ownership Stake in Eco Window Systems
January 12, 2021
PGT Innovations signed a definitive agreement to acquire a 75 percent ownership stake in Eco Window Systems and its related companies for a purchase price of $108 million, subject to closing adjustments. Eco is a leading manufacturer and installer of aluminum, impact-resistant windows and doors serving the South Florida region.
“The addition of Eco to our corporate family is expected to accomplish several objectives within our strategic framework for profitable growth,” says Jeff Jackson, president and CEO. “This transaction results in vertically integrated manufacturing capabilities, which strengthens our supply chain for glass and is expected to enable faster production. Further, we will have access to an additional portfolio of aluminum impact resistant products that we believe will enhance our presence in the multifamily and commercial channels. In addition, we will gain relationships with new dealers whom we do not currently serve.”
The purchase price of $108 million is comprised of $100 million cash and $8 million of PGT common stock for a 75 percent ownership stake in Eco. PGT expects to finance the transaction with cash on hand and existing or additional financing arrangements. PGT retains an exclusive option to buy the remaining 25 percent of Eco beginning on the second anniversary of the closing of its purchase of the 75 percent ownership stake in Eco. During a limited window after the third anniversary of the closing date, Eco has the right to require PGT to purchase the remaining 25 percent interest of ECO if it has not done so by that date.