Masonite sees PGT Innovations deal adding ‘meaningful’ accretion to EPS

Masonite International (DOOR) issued the following statement. “Masonite remains fully committed to the transaction with PGT Innovations (PGTI) on its current terms and is confident that the definitive merger agreement – a result of thorough due diligence and careful negotiation by both the Masonite and PGTI Boards – reflects a full and fair value for PGTI and its shareholders. In addition to compelling value, Masonite’s agreement also provides a high degree of transaction certainty; Hart-Scott Rodino filings have already been made and Masonite and PGTI continue to pursue a swift path to closing. The transaction will create a leading door and window solutions company with substantial depth and breadth and a strengthened growth and financial profile with a compelling $33.50 in cash for PGTI shareholders plus the unique ability to participate in the powerful upside growth potential of the business with approximately 16% ownership of the combined company through the receipt of Masonite stock; Approximately 200 bps increase in future revenue growth rate and an expanded total addressable market..See Approximately $100M in carefully considered and thoughtfully detailed annual cost and revenue synergies phased in over two and four years, respectively, following the close of the transaction; Meaningful accretion to Masonite’s earnings per share in the first full year post-close; and Creation of a scaled business delivering strong cash generation to support our commitment to de-lever below 3x in the two years following close.