Building products company relocates HQ to North Carolina after merger

NCI Building Products (market cap $730 million) has completed its stock-for-stock merger with North Carolina-based Ply Gem. The deal was originally announced in July. NCI manufactures building products for commercial construction whereas Ply Gem does the same for residential.

The corporate office will relocate from NW Houston to Cary, North Carolina.

NCI shareholders own 53% of the combined company. NCI Chairman, James Metcalf, has become the Chairman and CEO of the combined company. Shawn Poe, current CFO of Ply Gem, has been appointed overall CFO. Interim CFO, Brad Little, has stepped down. He became acting CFO after previous CFO Mark Johnson left in June 2018.

(UPDATE 1-7-2019 : NCI announced that Shawn Poe is stepping down as CFO, effective May 2019. The company has launched a search for his successor).

Clayton, Dubilier & Rice, a PE firm based in New York, owned 34% of NCI. They originally gained a 68% stake in NCI in 2009 as part of a financial restructuring and gradually reduced their stake since then, through various means. In April 2018  CDR acquired Ply Gem and concurrently merged it with Atrium Windows and Doors. After the merger, they now own just under 50% of the combined business.

The stock price of NCI was $20.70 at the time the deal was announced. It is now trading at $11.19. That means that the enterprise value of Ply Gem has dropped from $3.7 billion at acquisition to $3.2 billion at closing.

SEC filing – Closing of transaction

https://www.andrewjowett.net/2018/07/18/houston-public-company-to-move-headquarters-after-merger/

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