Cary, North Carolina-based Ply Gem signed a deal with Fortune Brands Home & Security to acquire Simonton Windows.
The deal is valued at about 10 times Simonton’s earnings before interests, taxes, depreciation and amortization — about $130 million — and is expected to take close in October. Simonton’s annual revenues are more than $300 million.
Ply Gem will also acquire SimEx, a vinyl and PVC foam extrusion manufacturing plant in West Virginia, as part of the deal with Fortune Brands.
Ply Gem pointed to several benefits of the acquisition, including the establishment of a strong national residential windows platform, The addition of business in the repair and remodeling market (Simonton’s strength), and the prospect of operational efficiencies.
Ply Gem will operate Simonton Windows as a stand-alone business unit, similar to the way the company’s existing Siding and Window groups operate today. Simonton customers will continue to be serviced through its existing relationships.
The addition of Simonton Windows in full alignment with our strategic growth plan and will better balance the mix of end markets that we serve while strengthening our core capabilities and contributing significantly to revenues in the future,” said Gary E. Robinette, Ply Gem’s President and CEO.
Robinette added that Ply Gem will welcome the experienced Simonton management team to Ply Gem when the deal is closed.
“The sale … will allow us to more sharply focus on our Therma-Tru entry door and Fypon trim business and position us to further increase operating results in 2015,” Fortune Brands CEO Chris Klein said.