Afterhours trading sees PGT Innovations shares rise by 4.4% to $42, following an unexpected bid from Miter Brands. The proposal opens the door to a possible bidding war, creating anticipation in the market.
Trading Resumes with Increased Optimism
Trading resumed at 4:07 p.m. ET after being halted at 3:23 p.m. ET. Despite a 1.2% dip in regular trading, with the stock closing at $40.23, the news of Miter Brands' proposal has generated renewed interest and confidence among investors.
Miter Brands Makes Its Move
PGT Innovations, a prominent company in the windows and doors sector, has received an acquisition proposal from Miter Brands, a company with a similar focus. Miter Brands proposes to acquire all outstanding shares of PGT for $41.50 per share in cash. This offer suggests an equity value of approximately $2.37 billion.
A Timely Surprise
Miter Brands' offer follows closely on the heels of an already disclosed deal between PGT and Masonite International. In December, Masonite, a producer of doors for residential and commercial use, agreed to a payment of $33.50 in cash and $7.50 in stock for each PGT share. The total value of the deal was estimated at around $3 billion.
PGT Evaluates the Offer
PGT has announced that its board will examine Miter's proposal carefully to assess whether it possesses the potential to supersede the existing agreement. This rigorous review will help determine the next course of action.