Andersen Corp. to Divest Dashwood Industries; to Open New Distribution CenterNovember 15th, 2010 | Category: Industry News
Andersen Corp. announced last week that it has signed a letter of intent to sell one of its companies, Dashwood Industries Inc., in Centralia, Ontario, Canada, which manufactures vinyl windows and entry door systems. The purchasers are four current managers at Dashwood who intend to continue to operate the company and market its products within Ontario.
Andersen noted it has conducted a thorough analysis of the Dashwood business, its growth potential and its long-term potential for success.
“While we believe the business has long-term viability and the steps we’ve taken to reduce the cost structure have enabled the business to withstand the ongoing downturn in the housing industry, we concluded it no longer meets our criteria for ongoing investment and that it’s in our best interest to refocus our resources on our five principal window and door businesses,” says Jay Lund, president and chief operating officer of Andersen Corp.
“When these four leaders emerged with a proposal to purchase the business, it created an opportunity that would benefit all involved parties – Andersen, the new principals and our employees at Dashwood.”
“We are all in agreement that operating as a standalone company is a viable option, especially because there is a defined market area to sell within Canada and a very specific product line—vinyl windows and entry door systems,” says Dennis Foran, on behalf of the purchasers.
Dashwood products are sold through a network of independently owned and operated retail outlets and direct to professional builders throughout Ontario and the Greater Toronto region.
Andersen expects to complete this transaction in December. At that time, Dashwood’s current vice president and resident manager, Tony Hall, will retire.
New Distribution Center to Open
In other news, Andersen will open a distribution center in Fall River, Mass.. The distribution center will be used primarily for receiving, storing, staging and loading Andersen enterprise products to be distributed to independent dealers and Home Depot stores in seven states from New York to Maine.
Andersen housed one of its window manufacturing operations in Fall River for a number of years and looks forward to returning to the area.
“We are pleased to be able to return to Fall River and to bring jobs back to the community,” said Maureen McDonough, director of corporate communications at Andersen. “We have appreciated the support we’ve received from the Fall River Office of Economic Development and we look forward to building a strong relationship with the Fall River Career Center as they assist us in hiring for this new facility.”
Andersen’s distribution facility is expected to open early in 2011 and create approximately 50 employment opportunities.