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W&D Weekly
December 2, 2015
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The Latest
PGT to Acquire WinDoor in $102 Million Deal
In a move consistent with its strategy to grow through the acquisition of complementary specialty products, PGT Inc. announced it has signed a definitive agreement to buy WinDoor Inc. Read More

Avoiding Call-Out Sizing Errors
Not only is dimensional accuracy important, but so too is how the dimensions are interpreted. Some sizing interpretation is pretty clear—for example, muntin bar width. However, window “call-out sizing” can be interpreted in several different ways, and this is an opportunity for error. Read More
More News
Remodeling Spending Expected to Accelerate into 2016
Vista Window Adds Super Spacer to Product Offering
Consumer Confidence Takes a Hit in November
Product Spotlight
Edgenet's m2o Quote and Order Software

Edgenet's m2o quote and order software brings dealers and manufacturers together, in real time - for real results. m2o is a proven cloud solution, built to perform on any modern platform and popular browsers including Chrome, Safari, IE, and Firefox. Edgenet knows dealers want mobile tools too, so m2o runs on iOS and Android mobile devices for quoting on the go - at the speed of your sales.
The Talk

By Andrew K. Petryk

Merger and acquisition activity in the window and door industry is accelerating. Participants are seeking consolidation opportunities to expand manufacturing footprints and capabilities, broaden product portfolios, and enhance margins. And, today’s perfect storm of pent up demand, cheap financing and surplus capital is driving up valuations. All of this creates a particularly advantageous window for sellers contemplating exits.

Investors have considerable buying power and are responding in kind using acquisitions to accelerate growth. Corporates are looking to mergers and acquisitions over organic expansion as they face increased pressure to match acquisitive competitors, despite rising purchase prices.

Also, financial buyers are bidding at levels comparable to strategic buyers—the continued pressure to put dollars to work forces private equity groups to be aggressive in auctions and bid up purchase multiples for the right assets. With industry fragmentation a draw, we expect to see funds aggressively pursuing acquisitive growth in order to create value.

How long will today’s elevated pricing environment last? Looming interest rate hikes have the potential to dampen valuations, but not investor appetite—especially given the billions in unspent capital available for acquisitions.

Ultimately, company quality drives purchase price multiples. Behind every premium multiple you will find a seasoned, forward-thinking management team, a culture of innovation, strong financial performance, and visible and quantifiable growth opportunities.

What do you think all the recent activity in mergers and acquisitions means for your company and for the industry at large? Weigh in on this week’s poll, post a comment and/or email your thoughts on the subject.

Over the next 12 months, do you believe that valuations in the window and door industry will:
Remain at the same level

How Familiar Are You with Egress Requirements for Window Replacement?
Less than half the respondents to last week's poll report having a "solid understanding" of the requirements.
Read the Full Results

The Outside View
Solving Problems Before They Occur
From Glass Magazine

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