BAYPORT, Minn. — Ply Gem has acquired a division of Andersen Corp. in a $190 million deal.
The companies announced that Andersen signed a definitive agreement to sell its hollow core vinyl window and patio door business — including the Silver Line and American Craftsman brands — to Ply Gem, a North American manufacturer of building products.
Ply Gem will acquire the four Silver Line manufacturing plants, associated distribution and support services for $190 million, which represents a 10-times multiple of Silver Line's trailing 12-month EBITDA (earnings before interest, taxes, depreciation, and amortization) through the second quarter of 2018.
The more than 4,000 employees working in the divisions will transition to Ply Gem, along with the business.
"The Silver Line and American Craftsman brands are industry leading brands and have been trusted by customers and consumers for over 60 years and Ply Gem is excited to add them to our existing portfolio of quality window products," said Gary E. Robinette, Ply Gem's chairman and CEO.
The transaction is expected to close by early in the fourth calendar quarter of 2018, subject to regulatory review and approval.
"This divestiture is part of Andersen's broader strategy to sharpen our focus on our Andersen, Renewal by Andersen and specialty brands, continue to make the significant investments required to support our fast-growing, proprietary, Fibrex engineered composite products, and deliver exceptional value to our customers for years to come," said Andersen Corp. Chairman and CEO Jay Lund. "In addition, we believe the Silver Line and American Craftsman brands and the talented employees who have built these brands will have continued growth opportunities under Ply Gem's stewardship."