JLL Partners has sold 19.4 million shares of PGT Industries under a secondary offering and a share repurchase program of PGT Industries. JLL initially invested in PGT in 2004 and remains its largest shareholder with 28% ownership.
The sale of the PGT shares provided JLL Partners Fund IV, LP, with $143 million of total proceeds. Including prior distributions of $95 million, JLL has now returned 1.5x its cumulative invested capital of $163 million, and at current market prices the firm’s investment in PGT is valued at 2.1x invested capital.
PGT Industries (NASDAQ: PGTI) is a manufacturer and supplier of impact-resistant windows and doors through its WinGuard-branded product line. The company’s impact-resistant products combine aluminum or vinyl heavy-duty frames with laminated glass to provide protection from hurricane-force winds and windborne debris. The company also supplies a complete range of premium, made-to-order and fully customizable aluminum and vinyl windows and doors. PGT Industries is headquartered in Venice, FL (www.pgtindustries.com).
Since the unprecedented downturn in the housing market, JLL has worked closely with PGT management to execute a series of operational and capital markets initiatives to provide the company with financial flexibility and position the business for the impending market recovery. Over the past 18 months, the Florida new home construction market has begun to recover from its historic lows. As a result of PGT’s market leading position and earnings leverage, the company’s EBITDA is rapidly improving.
JLL Partners seeks to invest in companies across a range of manufacturing and service industries. Sectors of specific interest include healthcare services, medical products, food and consumer products, chemicals, broadcasting, transportation, automotive, industrial manufacturing, and distribution. JLL Partners is based in New York (www.jllpartners.com).
© 2013 PEPD • Private Equity’s Leading News Magazine • 6-13-13