Shares of PGT Innovations Inc.
PGTI,
shot up 8.1% into record territory in premarket trading Monday, after the maker of windows, doors and garage doors announced an agreement to be bought by Masonite International Corp.
DOOR,
in a cash and stock deal valued at $3 billion. Under terms of the deal, PGT shareholders will acquire $41 for each PGT share they own, made up of $33.50 a share in cash and $7.50 a share worth of Masonite stock. Masonite shares fell 2.0% ahead of the open. The deal, which is expected to close in the middle of 2024, will add to Masonite earnings in the first year and guide to $100 million in annual synergies. “The combined business will be well positioned to supply homeowners with differentiated solutions across both the interior and exterior openings of the home, while significantly expanding our geographic presence and growth opportunities,” said Masonite Chief Executive Howard Heckes. PGT’s stock, which had closed at a record $36.60 on Dec. 14, had rocketed 101% year to date through Friday, while Masonite’s stock had rallied 26.5% and the S&P 500
SPX,
had climbed 22.9%.
