Pella Corp. announced Wednesday the divestiture of two luxury line businesses: Vassalboro, Maine-based Duratherm Window Company LLC and Calverton, New York-based Michael Reilly Design (dba Reilly Architectural).

“While Pella has learned a lot about the luxury market over the last seven years, we have found that there are vast differences in our business models which prohibit us from gaining the synergy we need to deliver on our growth strategy,” said Pella’s CEO, Tim Yaggi.

Instead, the company will focus on enhancing its capabilities in the “fastest growing geographies and channels, and focus on high margin, high growth product segments that can create scale,” Yaggi said.

The move is part of the company’s strategic planning process and a routine evaluation of its industry position, officials said.
Duratherm manufactures custom wood doors and windows.

Reilly Architectural produces custom hardwood and metal doors and windows.

Duratherm will be purchased by prior owner Tim Downing, who owned the company for over 30 years before it was acquired by Pella. Downing continued to lead the company through Pella’s ownership.

Michael Reilly Design is set to be purchased by Stately Doors & Windows, a luxury business based in Irving, Texas. Reilly and Stately are “complementary businesses serving the luxury, custom market and together will expand their capabilities and geographic footprint,” officials for Pella suggested. Stately is part of Kin Capital Partners, which owns several custom-building materials manufacturing companies and distributors.

Employees impacted by the divestitures will be offered support as they transition to new opportunities with the acquiring companies, Pella officials said. Approximately 165 employees from Michael Reilly Design and 60 from Duratherm are affected.

Seale & Associates served as the exclusive investment banking advisor to Pella on the Reilly transaction.

Transactions are expected to be completed by August 1, 2024.

Leave a Reply

Your email address will not be published.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