Key Takeaways
- A bidding war could be underway for PGT Innovations, which received an unsolicited offer from Miter Brands at $41.50 per share.
- Last month, PGT reportedly rejected a lower offer from Miter and agreed to a bid of $41 per share from Masonite International.
- The news sent shares of PGT Innovations to an all-time high.
PGT Innovations (PGTI) shares surged to an all-time high after the window and door manufacturer received a $2.4 billion unsolicited takeover bid from rival Miter Brands, which could create a bidding war with another door maker, Masonite International (DOOR).
PGT said Miter offered $41.50 per share in cash, a 2% premium over PGT’s closing price yesterday.
PGT reportedly rejected a proposal of $38 per share from Miter last month. On Dec. 18, Masonite International then agreed to purchase the company for $3 billion, or $41 per share. That deal called for investors to receive $33.50 in cash and $7.50 in common stock for every PGT share they owned.
PGT said that consistent with the terms of the Masonite agreement, its board, in consultation with independent financial and legal advisors, “will carefully review Miter Brands’ proposal to determine if it is reasonably likely to lead to a superior proposal.”
The company added that it will make no other comments until the board completes its review, and advised shareholders to “take no action at this time.”
Shares of PGT Innovations were up 3.2% at $41.50 per share as of about 12:30 p.m. ET Wednesday and have more than doubled in the past year. Masonite International shares fell 0.8% to $84.33 per share Wednesday following the news, and were up 4.2% from a year ago.
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