Onex Completes Jeld-Wen Deal
Toronto-based Onex Corp. and its affiliates completed its previously-announced $871 million investment in Jeld-Wen Holding Inc. yesterday, acquiring a 58 percent ownership stake in the Oregon-based window and door manufacaturer. In connection with the acquisition, Jeld-Wen completed a $460 million bond offering, the proceeds of which in combination with the Onex Group’s investment, were used to refinance the manufacturer’s existing debt.
The Onex Group’s total investment includes $700 million of convertible preferred stock, providng the equity investor a 58 percent ownership stake. Additionally, the Onex stake 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. Jeld-Wen’s corporate culture remains firmly rooted and intact, with the company continuing to be privately owned and headquartered in Klamath Falls, Ore., officials state.
“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,” says Anthony Munk, Onex managing director. “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,” adds Rod Wendt, the manufacturer's CEO. “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."
In August, Philip Orsino, Onex’ building products industrial partner, was appointed by the Jeld-Wen Board of Directors as Jeld-Wen’s president. Orsino was formerly the CEO of Masonite International until 2005 and has spent more than 25 years in the global door and window manufacturing business. He is now responsible for day-to-day operations at the manufacturer and is working with the management team to improve the company’s overall operational and financial performance.