NCI Building and Ply Gem to Merge

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NCI Building Systems, Inc. (NYSE: NCS) and Ply Gem Parent, LLC announced on July 17th that they have agreed to an all-stock merger valued at approximately $3.6 billion. Ply Gem shareholders will receive 58.7 million shares from NCI. NCI shareholders will own approximately 53% of the combined company with Ply Gem shareholders owning 47%. This merger is expected to make the combined company a market-leading exterior building products provider of solutions for new construction in North America. The combined company will have its headquarters in Cary, NC, and will also have operations in Houston, TX. The new entity is expected to generate about $4.5 billion of revenue in 2018. The companies stated that this deal will immediately add to adjusted earnings as well as free cash flow. Credit Suisse acted as financial adviser to Ply Gem with Evercore serving as NCI’s financial adviser. Davis Polk & Wardwell provided legal counsel to Ply Gem.

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