Freedonia Analyst Weighs in on Acquisition and Merger of Ply-Gem and Atrium Windows & Doors

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Feb 02, 2018, 01:56 ET

CLEVELAND, Feb. 2, 2018 /PRNewswire/ -- Two of the country's leading window producers are set to join forces.

Building materials manufacturer Ply Gem – which ranks among the top five suppliers of windows and doors to the US – announced on Wednesday that the company will be sold to private equity firm Clayton, Dubilier & Rice (CD&R), which will also purchase major window and door producer Atrium.

The combined revenues from Ply Gem and Atrium are expected to exceed $2.4 billion. C&DR will own 70% of the new company, while Atrium shareholders (which include funds managed by Golden Gate Capital) will control the remaining 30%.

According to Freedonia Group Analyst Carolyn Zulandt, "Ply Gem and Atrium are complementary businesses with broad window and door product offerings. The two companies attempted to merge over 20 years ago, but Ply Gem eventually terminated the agreement and accepted an offer from building products firm Nortek."

Zulandt further explains: "This new combined company will benefit from improved production and distribution efficiencies, as well as advantages like shared technological expertise in a very competitive industry. Together, Ply Gem and Atrium should capture a share of the US window market that comes closer to that of industry giant Andersen than any other supplier."

She continues, "The greater economies of scale and scope of the larger combined company should also make it a stronger competitor in the other building product markets served, which include doors, fencing, roofing, and siding."

Additional competitive analysis of key players in the US building products industry can be found in the following Freedonia reports: Windows Market in the US, Doors Market in the US., Siding Market in the US, Fencing, and Low-Slope Roofing Market in the US.

About The Freedonia Group – The Freedonia Group, a division of MarketResearch.com, is a leading international industrial research company publishing more than 100 studies annually. Since 1985 we have provided research to customers ranging in size from global conglomerates to one-person consulting firms. More than 90% of the industrial companies in the Fortune 500 use Freedonia Group research to help with their strategic planning. Each study includes product and market analyses and forecasts, in-depth discussions of important industry trends, and market share information. Studies can be purchased at www.freedoniagroup.com and are also available on www.marketresearch.com and www.profound.com.

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SOURCE The Freedonia Group