PGT Innovations, Inc. (NYSE: PGTI), a national leader in premium windows and doors, including impact-resistant products and products designed to unify indoor/outdoor living spaces, today announced that it has completed its previously announced acquisition of Anlin Windows & Doors.
This transaction supports our strategic framework for profitable growth by expanding our market presence in the high-growth West Coast region to complement the strong growth we continue to see in our Southeast region – said Jeff Jackson, President and CEO of PGT Innovations. – Anlin is a top regional brand for vinyl replacement windows and doors and is a great fit with our existing Western Window Systems brand, which is a leading provider of aluminum products for the new home construction market. This acquisition allows us to better serve both markets with a broad product portfolio and expanded sales network.
Anlin will operate under PGT Innovations’ Western Business Unit, and I am very pleased that Anlin’s top leadership will remain with the company – with John Maloney, Anlin’s former CEO, in an advisory role and Mark Maloney assuming the role of Vice President and General Manager of the Anlin Windows & Doors brand – added Jackson. – I’m confident that we will seamlessly and successfully integrate our products, processes, and culture. We’re excited about the future of the Anlin brand, and we’re thrilled to welcome Anlin’s 460-plus team members to our PGT Innovations family.
During the third quarter, we completed a private offering of 4.375% senior notes totaling $575 million aggregate principal due in 2029 – said Brad West, Senior Vice President and Interim Chief Financial Officer. – This new note provides a favorable long-term rate for our debt structure and lowers annual interest cost. – On a pro forma basis, as of the end of the second quarter, we had a trailing-twelve-month net debt-to-adjusted EBITDA ratio of 3.3 times. 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.
PGT Innovations plans to update its 2021 financial outlook and discuss the Company's third quarter 2021 results on its conference call and webcast scheduled for Thursday, November 11, 2021, at 10:30 a.m. eastern time.
The purchase price at closing was approximately $113.5 million plus earnout payments of up to approximately $12.6 million in aggregate, subject to certain adjustments. The purchase price is subject to a post-closing true-up mechanism, which is expected to be determined within approximately ninety days.
Anlin generated approximately $106 million in sales during the trailing twelve months ending in July 2021, with a mid-teen adjusted EBITDA. PGT Innovations paid approximately 8.5x pre-synergies and expects the transaction to be accretive.
During the third quarter of 2021, PGT Innovations announced a private offering of $575 million of 4.375% senior notes due 2029. The Notes were offered to finance, together with any borrowings under the Company’s credit agreement, the purchase price of Anlin. The Company also used the proceeds to redeem in full $425 million 6.75% Senior Notes due 2026 and repay $54 million outstanding amount under the existing term loan credit facility.
On October 25, 2021, PGT Innovations borrowed $60 million under its term loan agreement, which was amended to provide borrowing up to $180 million, leaving undrawn revolver capacity of $74 million.