Shares of PGT Innovations (NYSE:PGTI) gained 19% in pre-open trading Tuesday following a report overnight from Reuters that the company turned away a $1.9 billion takeover from Koch Industries-backed rival Miter Brands.
The offer valued PGT at $33 per share and was said to be fully financed. PGT was said to have viewed the offer as inadequate.
The report added that Miter may be prepared to raise its offer to $36 per share. However, it is not certain that they will continue to pursue a takeover of the company or if PGT would be open to a higher offer.
Analysts at Jefferies view a $36 offer as "more reasonable" as it would be closer to a 10x EV/EBITDA takeout multiple.
"In 2019, MAS sold its Milgard Windows business for ~10.7x 2019E EV/EBITDA to MI Windows, and we believe PGTI offers faster growth, and it's a higher-quality business," the analysts commented. "PGTI generates high-teens EBITDA margins, compared to Milgard's ~8%, and plays in premium window & door markets as opposed to commodity products, though interest rates are higher and the macro backdrop is more uncertain today."
PGT adopted a poison pill in March that prevents any investor from accumulating a position of 10% or more in its stock for a period of 12 months.