Chelsea Executives Confident with New OwnershipJuly 26th, 2011 by DWM Magazine
Executives at Chelsea Building Products say they are excited about the growth potential awaiting them via its new ownership. Graham Partners, a privately held investment firm, has acquired Chelsea Building Products Inc. in Oakmont, Pa., from the Tessenderlo Group. Chelsea, producer of PVC profiles for doors, windows and specialty products for the U.S. remodeling and new construction market, generated a turnover of approximately $50 million USD in 2010. Despite that, Tessenderlo says it shopped for a buyer so it could use the proceeds of this transaction for growth in its core activities.
“Chelsea Building Products has recovered strongly after the economic crisis, and offers good growth prospects. However, in this business we remain a small player and we are not able to reach a market leading position on our own,” says Albert Vasseur, Tessenderlo Group’s director of plastics converting.
“In January of 2010 a new president and CEO took over at Tessenderlo,” points out Terry Abels, senior vice president of marketing for Chelsea Building Products. “He outlined a plan where Tessenderlo would focus on specialty products in the areas of food, agriculture, bio-residuals and water management. Chelsea was not involved in any of those business segments so we became a candidate to sell to raise revenue which would allow Tessenderlo to invest and grow in these core activities.”
Graham Partners is pleased to add Chelsea to its product portfolio.
“We have a tradition of partnering with excellent middle-market manufacturing companies, with the objective of maximizing their growth potential. Chelsea Building Products has a strong track record of innovation and creating tailored customer solutions,” says Rob Newbold, managing principal at Graham Partners. “The low-energy PVC window and door systems of Chelsea Building Products are an excellent fit with our current portfolio.”
Graham Partners manages approximately $1.5 billion in internal and third-party investment capital. Abels says he is excited about the acquisition and the opportunities it will present to Chelsea.
“What we get from Graham is someone who will invest in us and partner to help us grow,” he says. “With Graham we get a proven team , financial expertise, extensive operating resources’ and an industry network which will help Chelsea implement its’ strategy. We came through the crisis of ’08 and ’09 relatively unharmed, and we are a much stronger company today than we were then. We expanded and added new products and customers during the market slump of 2008/2009, and that became very important to Graham.”
He adds that Chelsea customers have been contacted and the initial reaction has been favorable. “Our plan is to make this as seamless as possible for our employ and stakeholders,” he says.
For DWM’s initial coverage of the acquisition yesterday, click here.