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."
Related Stories
How to Create a World-Class Remodeling Team
Great remodeling companies position themselves for the future with the right players
Everyone Should Have a Number: KPIs for Your Design Build Team
Measuring key performance indicators guides your team to success while creating accountability and ownership
How to Revamp Your Pre-Construction Process
Experiencing too much slippage and delays? See how Bridget Bacon of Red House Design Build solved these issues by improving the remodeler's pre-construction process
How This Remodeler Revamped Their Pre-Construction Process
Bridget Bacon of Red House Design Build outlines how she helped transform the pre-construction process for improved finances and morale
Building A Small Projects Division from the Ground Up
Through hard work and careful strategy, Harth Home Services has seen big growth
A Mindset of Serving Others
A research study shows surprising results about what makes us take ownership of our work.
3 Keys to Successful Team Management
On this episode of Women at WIRC, hear Laura Burnes delve into her approach to leadership and project management, in addition to sharing insights into Adams + Beasley Associates' winning culture.
4 Steps to Prep Your Business for Contraction
How a remodeling company plans ahead for the worst of times (and the best of times)
Helping Remodelers 'Get Their House In Order'
From remodeler to NARI executive to industry consultant, Diane Welhouse uses her expertise to help business owners