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Tampa Masonite’s $3B deal with Gulf Coast rival falls through

Another major player in the door and window industry swooped in and offered to pay the Tampa corporation the termination fee for a Sarasota-area company.
 
Masonite relocated from Canada to Tampa in 2004. It debuted a new headquarters campus with Alliant Partners of Tampa and real estate investor Darryl Shaw in Ybor City two years ago.
Masonite relocated from Canada to Tampa in 2004. It debuted a new headquarters campus with Alliant Partners of Tampa and real estate investor Darryl Shaw in Ybor City two years ago. [ Google Earth ]
Published Jan. 17|Updated Jan. 17

A Florida Gulf Coast deal worth $3 billion was on its way to not only combine two of the largest public companies in the region but also two of the nation’s largest door and window manufacturers.

But the sale that would have been historic for Tampa-based Masonite International Corp. is no longer happening. Another major company in the door and window industry placed a higher offer for PGT Innovations.

Masonite announced Wednesday that it would not counteroffer and has canceled its purchase of PGT Innovations.

PGT Innovations — a Venice-based manufacturer of weather-resistant doors, garages and windows — said it received a “superior proposal” from Miter Brands, another leading door and window company based in Pennsylvania. Miter locked in a deal at $3.1 billion or $42 per share.

The company originally signed an agreement with Masonite in mid-December at $41 per share. But in early January, Miter put in an unsolicited bid for $41.50. PGT Innovations’ board of directors rejected the initial bid last week in favor of its deal with Masonite that would have required the company to pay an $84 million termination fee. But company executives said they were still open to negotiation.

In a new bid, Miter offered to pay Masonite the fee to break its agreement with PGT Innovations and pay $42 per share. PGT Innovations executives accepted, which gave Masonite four business days to alter its original deal, which Masonite chose not to do.

“The decision to waive our right to increase our offer reflects our commitment to financial discipline and rigor in our strategic investments,” Masonite CEO Howard Heckes said in a statement.

Masonite relocated from Canada to Tampa in 2004. It debuted a new headquarters campus with Alliant Partners of Tampa and real estate investor Darryl Shaw in Ybor City two years ago. It’s the seventh-largest public company on the state’s Gulf Coast, according to Florida Trend.

Masonite, PGT Innovations and Miter are among 11 U.S. door and window manufacturers that make more than $1 billion in sales, according to industry publication Window and Door’s 2023 top manufacturers report.

The sale of PGT Innovations, which reported nearly $1.5 billion in 2022 revenues, was expected to make Masonite a $4 billion company. Miter reported $2.2 billion in 2022.

Miter’s acquisition deal with PGT Innovations is expected to close in mid-2024 and will be partly financed by Koch Industries fund, the Pennsylvania company said in a statement. PGT Innovations will become a private subsidiary under Miter and will be taken off the New York Stock Exchange.