Ply Gem’s stock closed up 23 percent on Thursday, the day after the buildings product manufacturer announced it would be acquired by a New York private equity investment firm for $2.4 billion.
The Cary company’s stock surged 20 percent Wednesday after the deal was announced and continued its trajectory on Thursday; trading at $21.58 at mid-morning. It closed at $21.50.
According to Wednesday’s filing with the Securities and Exchange Commission, the firm Clayton, Dubilier & Rice will acquire all of Ply Gem’s outstanding stocks, and shareholders will receive $21.64 per share in cash.
CD&R will also acquire Atrium Windows & Doors, which makes energy-efficient windows for home construction and repairs and is based outside Greensboro. Atrium and Ply Gem will combine to form an exterior building products company with a total revenue of more than $2.4 billion. These transactions are expected to close in the second quarter of 2018.
About 70 percent of the new privately-held company will be owned by CD&R; Atrium shareholders, which include funds managed by Golden Gate Capital, will hold about 30 percent.
“The Ply Gem Board’s unanimous approval of this transaction is based on the conviction that it delivers superior value to shareholders,” Gary Robinette, chairman and CEO of Ply Gem, said in the release. “The strategic and operational excellence of CD&R and Golden Gate will help strengthen the long-term growth of the company. This support, along with the expanded business and product portfolio of the new combined company, will establish a stronger window platform with manufacturing scale and channel distribution advantages for customers.”
Ply Gem will remain headquartered in Cary, and Robinette will continue to serve as Ply Gem’s CEO and Chairman. CD&R Operating Partner John Krenicki will become the lead director of the board.
“This is a transformational milestone for two highly complementary businesses,” said Nate Sleeper, Partner at CD&R, in a statement. “Together, Ply Gem and Atrium have a well-positioned platform across North America, a deep set of capabilities to serve customers, and a strong foundation for long-term growth and value creation.”
A spokeswoman for Ply Gem declined further comment.