Private equity firm Clayton, Dubilier & Rice might have competition for vinyl-siding maker Ply Gem Industries, The Post has learned.
Rival PE firm Hellman & Friedman is weighing a bid for Ply Gem that could top CD&R’s $2.4 billion deal for the Cary, NC, company, according to two sources familiar with H&F’s thinking.
CD&R agreed on Jan. 31 to buy Ply Gem, which also makes vinyl and aluminum windows, for $21.64 per share — a 20 percent premium to its stock price.
CD&R is also in the process of buying Atrium Windows & Doors — which it plans to merge with Ply Gem.
Ply Gem’s shares closed Thursday at $21.90, up 2.2 percent after news of a possible H&F rival bid was reported on nypost.com.
H&F is also active in the buildings materials sector, owning vinyl windows and vinyl-siding maker Associated Materials. The PE firm has started due diligence on Ply Gem, sources said, but it has not yet decided if CD&R will make a competing offer.
“They have to move quickly,” one of the sources said, adding he was not sure H&F would have a better offer ready in time to top rival CD&R.
CD&R is expecting to close the Ply Gem deal in the second quarter, it said in a statement when the deal was announced. It would be entitled to a $45 million breakup fee if the deal is upset.
Manhattan financier Fred Iseman owns the majority of Ply Gem’s shares and is open to a competing offer, sources said.
There was a time when PE firms did not jump each other’s signed deals, but that rule in recent years has seemed less sacred.
H&F declined to comment. Ply Gem did not return calls by press time.