Onex Ups its Investment in Jeld-WenAugust 2nd, 2011 by DWM Magazine
Onex Corp. announced today that it has amended its previously announced agreement to invest in JELD-WEN Holding Inc. The company will now invest $864 million compared to the previously announced $675 million. The company also announced that upon final closing of Onex’s investment in JELD-WEN, Philip Orsino, Onex’s building products industrial partner, will be appointed as JELD-WEN’s president. Orsino was formerly the chief executive officer (CEO) of Masonite International until 2005.
Onex says the investment will be made in two transactions. First, $675 million of convertible preferred stock representing approximately a 58-percent ownership stake, up from the previously contemplated investment of $475 million and 39-percent ownership interest. Second, a $189 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 investment will be made by Onex and Onex Partners III, Onex’s flagship private equity fund. Upon closing of the transaction, Onex’s share of the investment will be approximately $295 million. The transaction is anticipated to close in the third quarter subject to customary regulatory approvals.
As president, Orsino will have broad oversight of global operations. Following the closing, Onex says it will appoint four of the eight directors on JELD-WEN’s board.
The balance of the company will continue to be owned by the trust of Richard Wendt, members of the Wendt family, JELD-WEN employees and other existing shareholders. Rod Wendt, son of JELD-WEN’s late founder Richard Wendt, will continue in his role as CEO.
“I look forward to welcoming Philip to our executive team,” says Wendt. “Many of us at JELD-WEN have known him for years and we admire his leadership in our industry. I have a great deal of respect for his knowledge, track record and expertise. He will be instrumental in our future growth.”