Big Exit Multiple at Western Window

Big Exit Multiple at Western Window

PGT Innovations has agreed to acquire Western Window Systems from PWP Growth Equity, the middle market private equity group of Perella Weinberg Partners, for $360 million in cash.

Western Window is a maker of doors and windows primarily used in wide opening applications – such as multi-slide pocket doors and bi-folding doors – that are used to facilitate indoor/outdoor living. The company’s products are manufactured from aluminum and vinyl and are sold into the high‐end custom home market, the production home market, and select commercial markets. The company has 330 employees, led by CEO Scott Gates, and is headquartered in Phoenix (

PWP Growth invested in Western Window in July 2015. Over the past 12 months, Western Window has introduced 14 new products focused on energy efficiency and structural performance. According to the company, these new products are driving growth in many of its target markets due to increased regulations and demand for energy-efficient products.

Following the close of the transaction, Western Window will become a wholly owned subsidiary of PGT and will continue to operate and manufacture products as a separate and distinct brand.

For fiscal 2018, Western Window is projected to have revenues of approximately $126 million and an adjusted EBITDA of approximately $29 million. This performance will result in a compounded annual growth rate for revenues of 22 percent from 2015 through 2018. Western Window ended the first six months of 2018 with a record backlog. The purchase price multiple for the buy of Western Window is 12.4x projected and adjusted 2018 EBITDA.

PGT Innovations (NYSE: PGTI) is a manufacturer of impact-resistant windows and doors. Company-owned brand names include CGI and CGI Commercial, PGT Custom Windows & Doors, and WinDoor. PGT has approximately 2,800 employees and is headquartered south of Tampa in North Venice, FL (

The buy of Western Window allows PGT to expand its product portfolio beyond impact-resistant products to products in the contemporary door and window systems segment and provides PGT access to growing geographies throughout the western United States, including California, Texas, Arizona, Nevada, Colorado, Oregon, Washington and Hawaii.

For the twelve months ending December 31, 2018, on a pro forma basis, the combined company is expected to generate $706 million to $732 million in net sales and approximately $135 million to $148 million in adjusted EBITDA.

“We are excited to add Western Window to the PGT family of brands,” said Jeff Jackson, President and Chief Executive Officer of PGT. “This transaction unites two highly complementary businesses to create a national leader in the premium window and door space, with an expanded product portfolio tailored to provide significant benefits for our collective customers.”

PWP Growth Equity, the seller of Western Window, makes both minority and control investments of $25 million to $100 million in lower middle market companies operating in the consumer, industrial and services sectors. The firm is co-managed by partners David Ferguson and Chip Baird and is based in New York (

Jefferies ( is the financial advisor to Western Window and SunTrust Robinson Humphrey ( is the financial advisor to PGT.

PGT will finance the transaction through a combination of cash on hand and $315 million of new debt for which it has received financing commitments.

The transaction is expected to be completed in the third quarter of 2018.

© 2018 Private Equity Professional | July 25, 2018

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