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Door & Window Market www.dwmmag.com
MERGERS
Ply Gem and Atrium Windows & Doors
to Combine Into One Company
B
oth Ply Gem and Atrium
Windows & Doors have been
acquired simultaneously by
private-equity fi rm Clayton, Dubilier
& Rice (CD&R), which will combine
them to create a huge exterior build-
ing products company with total rev-
enue of more than $2.4 billion.
Under the agreement, announced
in late January, CD&R will pay $21.64
per share to all holders of Ply Gem
common stock and transition the
company from publicly traded to pri-
vately held. That’s about 20 percent
higher than Ply Gems closing stock
price on January 30, 2018.
CD&R’s agreement to acquire Ply
Gem is not subject to the acquisition
of Atrium, the terms of which werent
revealed because Atrium is a private
company. But once the transactions
are completed in the second quar-
ter of 2018, CD&R will own about 70
percent of the new company. Atrium
shareholders, which include funds
managed by Golden Gate Capital, will
control approximately 30 percent.
The new Ply Gem will continue to
be headquartered in Cary, N.C. Gary
E. Robinette, currently chair and CEO
of Ply Gem, will continue in those
roles. John Krenicki, a CD&R oper-
ating partner and former vice chair
of General Electric, will become lead
director of the board.
“The Ply Gem boards unanimous
approval of this transaction is based on
the conviction that it delivers superior
value to shareholders,” said Robinette
in a statement. The strategic and
operational excellence of CD&R and
Golden Gate will help strengthen the
long-term growth of the company.
This support, along with the expand-
ed business and product portfolio
of the new combined company, will
establish a stronger window platform
with manufacturing scale and channel
distribution advantages for custom-
ers. Together with the talented Atrium
team, we look forward to providing
exceptional value and service to all of
our customers and rewarding career
opportunities for our associates.
Atrium generated revenue of
approximately $350 million in 2017.
“We are excited to combine with
Ply Gem and look forward to the syn-
ergies that will be achieved through
an enhanced product breadth and
stronger North American platform,
which will allow us to drive topline
growth and customer value,” said Ron
Cauchi, Atrium CEO, in a statement.
The newly expanded Ply Gem will also
have a large footprint in North America.
Ply Gem has 8,500 employees at more
than 65 locations in North America.
Atrium Windows is headquartered
in Welcome, N.C., about 100 miles west
of Ply Gems HQ near Raleigh. The
company also has operations in Dallas
and London, Ontario. It employs about
3,000 people. In early February, the
company announced that it will be hir-
ing about 150 workers each at its North
Carolina and Texas facilities, accord-
ing to a report in the Triad Business
Journal. However, Atrium vice presi-
dent of human resources Lori Imhoff
told the publication that the merger
and the company’s plans to add new
employees are unrelated. Imhoff cited
strong growth as the reason for the
expanded workforce.
The Bigger Picture
Freedonia Group analyst Carolyn
Zulandt thinks the merger will instant-
ly produce an industry giant.
“This new combined company will
benefi t from improved production
and distribution effi ciencies, as well
as advantages like shared technolog-
ical expertise in a very competitive
industry,” she said. “Together, Ply
Gem and Atrium should capture a
share of the U.S. window market that
comes closer to that of industry giant
Andersen than any other supplier. The
greater economies of scale and scope
of the larger combined company
should also make it a stronger com-
petitor in the other building product
markets served, which include doors,
fencing, roofi ng and siding.
What’s
News
12
continued on page 14
A Mega-Merger
Ply Gem
• Headquarters: Cary, N.C.
• Workforce: 8,500
• Locations: 65 across North America
• 2017 Revenues: More than $2 billion
Atrium
• Headquarters: Welcome, N.C.
• Workforce: 3,000
• Locations: 3 across North America
• 2017 Revenues: Approximately $350 million
CONTINUED
What’s
News
14
Door & Window Market www.dwmmag.com
The Insulating Glass Manufacturers
Alliance (IGMA) held its 2018 Winter
Conference in Tucson, Ariz., in early
February, and certification was a
major focus.
Safety Glazing Certification
Council (SGCC): John Kent, presi-
dent of Administrative Management
Systems (AMS), updated the council
on the development of an online
training tool to outline how to run
safety tests correctly. The SGCC plans
to launch the training tool before its
next meeting in October. The council
will also consider integrating quality
system requirements with existent
testing and sampling requirements.
Insulating Glass Certification
Council (IGCC): IGCC will look at
which internal components should be
tested according to the e2190 series
of test standards. IGCC also approved a
voluntary fingerprint process for seal-
ants. Companies can submit a sample
of the sealant to get a chemical fin-
gerprint. Companies will then be able
to compare the sealant from one year
to another or pre- and post-test. IGCC
considered formalizing the corrective
action process after a request for root
cause analysis upon test sample fail-
ures. The proposal was not approved.
It’s unclear if the process will be picked
up by the council later. The IGCC also
is focused on product equivalency to
allow switching between products in
the same generic category. Current
codes define the three spacer catego-
ries as single-material single-function
spacers, multi-material single-function
spacers and multi-material multi-func-
tion spacers.
Insulating Glass Manufacturers
Association of Canada (IGMAC):
Its certification program received a
request for the gas content testing
of triple-glazed units to be averages
across all cavities rather than having
the unit fail because one cavity does
not meet the requirements.
Sealants: A new task group was
created to define test methods for
two-part sealants. Another task group
was created to work through some of
the challenges of defining tolerances
of different spacer systems. Spacers
and sealant suppliers were asked to
determine how many spacer system
categories currently exist.
Design considerations for com-
plex configurations: Certification
committee chair Roland Rossman of
Garibaldi Glass called for a task group
to establish guidelines for design
considerations for complex insulating
glass units (IGU), which includes over-
sized glass.
Vacuum insulating glazing: David
Cooper of Guardian Industries report-
ed that the vacuum insulating glazing
(VIG) task group has sent out ballots
for the first phase of a VIG dura-
bility standard. Under the proposed
standards, manufacturers would sub-
mit test samples to be measured for
R-factor within the first phase. The
second phase would focus on thermal
stability.
Thermal stress: IGMA technical
director Bill Lingnell reported that
the committee is analyzing dynamic
thermal stress. The committee’s goal is
to predict the probability of breakage
due to thermal stress, such as major
temperature difference exerted upon
the internal and external parts of the
glass simultaneously.
Provisional certification: John
Kent, president of Administrative
Management Systems, explained the
Insulating Glass Certification Council’s
(IGCC) provisional certification. The
group created a rapid assessment
chamber to measure the real-time
failure of units. During IGCC’s testing,
argon levels fell after relative humidi-
ty (RH) spiked. The moment of failure
for these units was referred to as a
“burp.”
Window PCR: IGMA members
debated whether to participate in a
multi-organizational revision of the
product category rule (PCR) on win-
dows to maintain the environmen-
tal product declaration (EPD). The
current PCR expires in September
2020. Members voted yes to continue
the conversation with the American
Architectural Manufacturers
Association (AAMA) and other orga-
nizations about revising the PCR. y
EVENTS
IGMA Winter Conference Focuses on Certification
Dustin Anderson of HGTV was one of IGMA’s featured speakers.

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© 2018 Copyright Key Media and Research All rights reserved. 
No reproduction of any type without expressed written permission.