Why Window Company PGT Innovations Shares Are Surging Today
Portfolio Pulse from Lekha Gupta
Shares of PGT Innovations Inc (PGTI) surged while Masonite International Corp (DOOR) shares declined following the announcement of Masonite's acquisition of PGT Innovations for $3.0 billion. The deal includes a mix of cash and Masonite shares, valuing PGTI at a 24% premium over its 30-day volume-weighted average share price. Post-acquisition, Masonite shareholders will own approximately 84% of the combined entity. The acquisition is expected to close in mid-2024 and is anticipated to be accretive to Masonite's EPS in the first full year. PGTI shares rose 8.8% to $39.28, while DOOR shares fell 13.14% to $88.60.
December 18, 2023 | 3:50 pm
News sentiment analysis
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NEGATIVE IMPACT
Masonite International shares declined following the acquisition announcement, potentially due to concerns over the cost and integration process.
Masonite's stock price drop may reflect investor concerns about the immediate costs of the acquisition, the integration process, and the dilution of shares due to the stock component of the deal.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
PGT Innovations shares surged due to the acquisition announcement by Masonite, with shareholders receiving a 24% premium on their shares.
The acquisition news has positively impacted PGTI shares as the deal offers a significant premium to shareholders, which is typically seen as a positive outcome for the target company's stock.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100