By David Carnevali and Anirban Sen
NEW YORK (Reuters) – PGT Innovations Inc, a U.S. maker of vinyl and aluminum doors and windows, rebuffed a $1.9 billion acquisition offer from Miter Brands, a competitor backed by Koch Industries, people familiar with the situation said on Monday.
PGT’s board of directors turned down Miter’s fully-financed $33-per-share offer which it deemed inadequate, the sources said.
Miter is considering raising its bid to a $36 per share, one of the sources added. PGT shares ended trading on Monday at $26.20.
There was no certainty that Miter will continue with its pursuit of PGT or that any deal will be reached, the sources said, requesting anonymity because the matter is confidential.
PGT declined to comment, while Miter Brands did not respond to a request for comment.
PGT manufactures and supplies windows and doors. The Venice, Florida-based company expanded into the overhead garage door market by acquiring Martin Door Holdings for approximately $185 million in 2022. Its net sales grew 28.5% year-on-year in 2022 to $1.49 billion.
PGT in March adopted a so-called poison pill to prevent any investor from accumulating a position of 10% or more in its stock for a period of 12 months. It attributed the move to “a likely accumulation of PGT shares by a strategic investor,” which it did not identify.
Miter was formed in 2019 through the combination of MI Windows and Doors and Milgard. The company is led by Matt DeSoto, whose family controls the business together with Koch Equity Development, an investment fund controlled by industrial conglomerate Koch. (This story has been refiled to correct the day to Monday in paragraphs 1 and 3)
(Reporting by David Carnevali and Anirban Sen in New York; Editing by David Gregorio)