Door maker PGT Innovations ditches Masonite for Miter's $3.1 billion deal

(Reuters) -U.S. door maker PGT Innovations has agreed to a higher offer from Miter Brands to take it private in a deal valued at $3.1 billion, weeks after it had green-lighted a bid from Masonite International.

The PGT board unanimously determined that Miter's deal constituted a "superior proposal" compared to vinyl and aluminum doors and windows maker Masonite's $3 billion deal, PGT said in a statement.

Masonite said it will not submit a revised offer to acquire PGT and has accepted a deal termination fee of $84 million.

PGT's shares were marginally down at $40.96 in morning trading.

Under the terms of the new deal, Koch Industries-backed Miter would buy all outstanding shares of PGT at $42.00 per share in cash, which represents a premium of 1.2% from the stock's last close.

The deal, expected to close by mid-year 2024, will be financed in part by an equity investment from Koch Equity Development — the principal investment and acquisition arm of Koch Industries — and a current investor in Miter.

KeyBanc Capital Markets and RBC Capital Markets were acting as financial advisers to Miter Brands, and Evercore to PGT.

(Reporting by Kannaki Deka in Bengaluru; Editing by Shinjini Ganguli and Shilpi Majumdar)