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After a $185 million acquisition, PGT Innovations Inc. is expanding its products to include garage doors.
PGT Innovations, a national leader in premium windows and doors, announced it had acquired Martin Door Holdings Inc. on Monday, Oct. 17. The new arm of the Venice-based company is expected to generate $60 million in sales this year, according to a statement.
Martin, a manufacturer of garage doors, serves the western part of the U.S. as its headquartered in Salt Lake City. The move is consistent with PGT Innovations’ strategy of expanding its product line of adjacent building product categories to complement its existing portfolio, officials say. It also supports the company’s strategic plan of scaling the business in desired markets. While already in the western region of the country through its brands Western Window Systems and Anlin Windows and Doors, the acquisition further strengthens that presence.
“PGT Innovations has been expanding our geographic footprint and product portfolio over the past several years with great success,” Jeff Jackson, president and CEO of PGT Innovations, says in a release. “This transaction continues that trend and brings us into a new market of garage doors. The garage door entry market aligns extremely well with that strategy.”
Jackson also adds it was a good fit with PGT Innovations’ culture as Martin keeps a focus on quality as well as safety of their products and innovation in the industry. The newest addition will operate under the Western Division of PGT Innovations with Martin’s CEO Scott Huntsman stepping into the role of president of Martin Doors. In addition, 173 team members with Martin will stay on through the transition.
“PGT Innovations’ long-standing focus on innovation, safety, and quality, as well as their exceptional dedication to their team members, made the decision to join their family of brands an easy one,” Huntsman says in the release. “We are honored that the group saw similar qualities in our team and selected Martin to be the brand to help them enter into the overhead garage door industry.”
A five-year, $250 million revolving credit facility that PGT Innovations entered into will be used to fund the transaction, as well as cash the company has on hand.
“On a pro forma basis, as of the end of the second quarter of 2022, PGT Innovations had a trailing-twelve-month net debt-to-adjusted EBITDA ratio of 2.6 times,” John Kunz, senior vice president and CFO. “Consistent with our priority of maintaining a strong and flexible balance sheet, we anticipate that reducing leverage after acquisitions will remain a capital allocation priority.”
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