Jeld-Wen Holding Inc. recently completed the sale of its Jeld-Wen Australasia business to Platinum Equity, a global interest firm. The deal follows through on a plan announced by Platinum Equity in April 2023.

“The closing of this transaction represents a significant milestone in our strategy to simplify and streamline the company while maximizing shareholder value,” said Jeld-Wen CEO William Christensen. “The sale of the Australasia business enables us to focus on our two largest and core regions, North America and Europe, and to strengthen our balance sheet.”

The transaction generated net proceeds of approximately $446 million for Jeld-Wen, which officials indicated will be used to repay debt. Excluding the Australasia business, Jeld-Wen’s 2022 net revenue was $4.5 billion. The North America and Europe segments contributed 72% and 28%, respectively.

“We are pleased to have provided a divestiture solution to Jeld-Wen, as the company continues to streamline and simplify its business,” said Platinum Equity co-president Louis Samson. “Platinum has decades of experience with corporate carve outs and we expect a seamless transition. We are excited about the prospects for the Australasia business as a standalone company.”

A process is underway to create a new corporate umbrella brand for the standalone enterprise, officials said.

Scott Kelly, who has been with Jeld-Wen in Australia for the past 10 years, will continue leading the business as CEO going forward.

“This is an exciting new chapter for our brands and our people,” said Kelly. “We are looking forward to accelerating our innovation program with Platinum Equity and expanding the value we add for our customers and homeowners.”

Several of Jeld-Wen’s brands are leaders in the production and innovation of double-glazed and thermally broken doors and windows, which are important tools for increasing total home energy efficiency.

Platinum Equity managing director Adam Cooper said those products, in particular, are expected to see strong demand, as the housing market in Australia moves through its current cycle.

“New regulations are coming into effect in Australia requiring improved energy performance in homes, and consumers increasingly appreciate the benefits of energy efficient products,” said Cooper. “The business is well positioned to capitalize on those trends and continue investing in innovation, which is good news from both a financial and sustainability standpoint. A growing population, historically stable economic growth and nationwide demand for additional housing across the country make us confident in the long-term outlook for the business.”

Cooper said Platinum Equity’s history in Australia, combined with its experience in the building products industry, makes it a great partner for Jeld-Wen’s Australasia business.

“We have been investing in Australia for nearly a decade. We know the market and are committed to putting our financial and operational resources to work in the region,” he said.

Leave a Reply

Your email address will not be published. Required fields are marked *