Pgt Innovations, Inc. (NYSE:PGTI)

PGTI ($14.00), the nation's leading manufacturer and supplier of residential impact-resistant windows and doors, announced today that it has sold certain assets to Cardinal Glass Industries for a purchase price of $28 million.  These assets included those that PGT used in processing glass components for doors.  The company also entered into a seven-year supply agreement in which Cardinal will supply those components to PGTI.

“Cardinal has been a loyal, long-term partner for us with a consistent track record of reliably delivering high-quality products. Better leveraging their industry-leading capabilities is a sound business decision as we prepare to meet the increasing demand for impact-resistant products expected in 2018 and beyond. This new agreement allows us to heighten our focus in our core areas of window and door manufacturing, where we excel, and enables us to pay down debt by the ameount of the purchase price, less taxes, and removes some of our future capital requirements and equipment maintenance costs. In addition, based upon pricing agreed upon in this supply arrangement, we expect there will be no unfavorable impact to our EBITDA margins.”

Member feedback had us initially take a look at PGTI.  We added it to our infrastructure screen on September 5, 2017 when the stock was trading at $13.30.