Onex Completes Investment in JELD-WENOctober 3rd, 2011 by DWM Magazine
The Onex Group and several partners have completed an $871 million investment in JELD-WEN Holding Inc., according to an announcement from the private equity firm. Onex now holds majority interest in the window manufacturing firm. The announcement comes after weeks of speculation about JELD-WEN’s fate and reports that the previously announced investment may not reach completion.
The total investment of $871 million includes $689 million from Onex Partners III, of which Onex’ share was $124 million as a limited partner in the Fund, and Onex’ $182 million investment as a co-investor in the transaction, according to a statement released by Onex.
The Onex Group’s total investment of $871 million includes: $700 million of convertible preferred stock to acquire a 58-percent ownership stake; and 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.
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 company’s existing debt.
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,” says 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,” adds Rod Wendt, chief executive officer of JELD-WEN. “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.”
Philip Orsino, Onex’ building products industrial partner, was appointed by the JELD-WEN board of directors as JELD-WEN’s president back in August. Orsino, former CEO of Masonite International until 2005, is now responsible for JELD-WEN’s day-to-day operations and is working with the management team to improve the company’s overall operational and financial performance.