PGT Innovations (PGTI) Sales Assets Worth $28M To Cardinal

PGT Innovations, Inc. (NYSE:PGTI) announced that it has sold assets worth $28 million, used in processing glass components for doors, to Cardinal Glass Industries. The step will aid PGT Innovations’ efforts to focus on core areas of window and door manufacturing.

Cardinal is an industry-leading manufacturer of residential glass for windows and doors, employing over 6,000 employees at 37 locations around the United States. PGT Innovations’ assets sale fits strategically and is profitable for both companies.

Notably, PGT Innovations remains focused to meet the elevating demand for impact-resistant products expected in 2018 and beyond. This new agreement will enable the company to pay down debt by the amount of the purchase price. It will also wipe out its few future capital requirements and equipment maintenance costs.

Notably, PGT Innovations will retain and continue to use certain strategic assets following the above discussed sale. In addition, the company plans to reallocate approximately 160 employees into its window and door assembly operations, and other areas. PGT Innovations has also entered into a seven-year supply agreement for Cardinal.

Of late, PGT Innovations has taken a number of actions to recover from the damages of Hurricane Irma. In sync with this, the company also partnered with WorldVision to coordinate collecting required supplies and area volunteers.

The company has outperformed the industry in the past year. Its shares have rallied 26.8%, while the industry recorded growth of 15.7%.

PGT Innovations currently carries a Zacks Rank #3 (Hold).

Better ranked-stocks in the same sector are MasTec, Inc. (NYSE:MTZ) , Owens Corning (NYSE:OC) and Potlatch Corp. (NASDAQ:PCH) . All three stocks flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

MasTec has an expected long-term growth rate of 14%.

Owens Corning has an expected long-term growth rate of 14.8%.

Potlatch Corp. has an expected long-term growth rate of 5%.

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