Onex to invest US$675M in Jeld-Wen, residential door and window maker
May 5, 2011
Onex Corporation announced yesterday that it will invest US$675 million and acquire a “significant minority interest” in Jeld-Wen Holding Inc. Jeld-Wen will continue to be majority-owned by the trust of Richard Wendt, members of the Wendt family, Jeld-Wen employees and other existing shareholders.
By Alyssa Dalton
Founded in 1960, Jeld-Wen is a manufacturer of interior and exterior doors, windows and related products for use primarily in the residential and light commercial new construction and remodel markets. The company operates 123 manufacturing and distribution centres and employs approximately 20,000 people in more than 25 countries.
For the twelve months ended December 31, 2010, JELD-WEN generated over US$3.0 billion in revenues.
“We believe that Jeld-Wen’s competitive position and well-known brands in markets around the world position the company very well to take advantage of the eventual recovery in global housing markets,” said Anthony Munk, an Onex managing director. “We are delighted to be investing alongside the Wendt family, and look forward to working closely with Jeld-Wen’s management team and employees to build on the company’s success.”
“This proprietary opportunity is the result of our focus and expertise in the building products sector and our industrial partnership with Philip Orsino, a founder and former CEO of Masonite International,” he continued.
Following the closing, Munk and Orsino will join the Jeld-Wen’s Board of Directors.
According to the companies, the US$675-million investment will be made by Onex Partners III, Onex’ flagship private equity fund, of which approximately US$120 million will be Onex’ share as a limited partner in the fund. Onex’ investment will be made in two tranches:
• US$475 million of convertible preferred stock representing a 39% ownership stake; and
• A US$200-million convertible note that can be redeemed within 18 months with proceeds from the sale of certain non-core assets.
The transaction is anticipated to close in the second quarter subject to customary regulatory approvals and completion of the associated debt financing.
The companies also noted that Jeld-Wen’s management, workforce and corporate culture will remain “firmly rooted and intact.”