After PGT’s acquisition of CGI completed in September, financial highlights show that PGT Inc. is spending money to make money, and is consistent with PGT’s plan to grow strategically while contributing to earnings growth through targeted acquisitions.
“As previously disclosed on 22 September 2014, we completed the acquisition of CGI. The transaction, valued at approximately USD 111 million, is consistent with PGT’s plan to grow strategically while contributing to earnings growth through targeted acquisitions of complementary specialty products,” says PGT’s president and chief operating officer, Jeff Jackson. “The historical results of CGI show solid sales growth and consistent high margins.”
The records show that PGT acquired CGI after CGI had experienced a year of growth, including: net sales of USD 32.8 million in 2013, an increase of USD 8.3 million, or 34% over 2012; net income of USD 1.5 million in 2013, compared to net loss of USD 480 thousand in 2012; net sales of USD 19.1 million for the six months ended 30 June 2014, an increase of USD 5.3 million, or 38% over the same period in 2013; and net income of USD 1.3 million for the six months ended 30 June 2014, compared to net loss of USD 54 thousand for the same period in 2013.
“We financed this acquisition with a USD 200 million term loan and an undrawn USD 35 million revolving facility,” says Brad West, PGT’s chief financial officer. “The term loan paid off existing indebtedness and third party fee in connection with the acquisition.”