Onex completes $871 million investment in Jeld-Wen

Onex cash injection helps window and door company avoid defaulting on debts

October 03, 2011

Canadian private equity firm Onex has completed its acquisition of a majority of Jeld-Wen Windows and Doors.

The investment should help Jeld-Wen to deal with its estimated $1.2 billion in debt, $500 million of which was reportedly due to be paid this month. Media in Oregon, where Jeld-Wen is headquarterd, had reported last month that the company was in danger of bankruptcy, a claim it denied.

Onex paid $700 million for a 58 percent stake in the company. The investment also includes a $171 million convertible note that can be redeemed within 18 months with proceeds from the sale of certain non-core assets and, if not redeemed, will convert into additional shares of convertible preferred stock.

The balance of the company continues to be owned by the trust of the late founder Richard Wendt, members of the Wendt family, Jeld-Wen employees and other existing shareholders.

“As an industry-leading business with tremendous brand awareness, strong market positioning, and truly global operations, Jeld-Wen fits very well with our investment approach,” said Anthony Munk, a managing director of Onex. “We are excited to be working with the Jeld-Wen team to build value and take advantage of the eventual recovery in global housing markets.”

“This is a very exciting time for Jeld-Wen,” said Jeld-Wen CEO Rod Wendt. “We believe that Onex' strategic guidance and experience combined with our strong balance sheet, brand and market position will allow us to further grow the company and strengthen our competitive position."

Overlay Init