JELD-WEN Enters into Letter of Intent to Acquire CMIJune 15th, 2012 by Editor
JELD-WEN Inc. announced today that it has entered into a letter of intent to acquire Craftmaster Manufacturing Inc. (CMI). Closing is subject to due diligence and the negotiation and signing of a definitive agreement, and is expected to occur in the third quarter of 2012, according to a statement from JELD-WEN.
CMI, based in Chicago, is a manufacturer and marketer of CraftMaster® molded door facings and doors, MiraTEC® exterior composite trim and Extira® exterior composite panels, with its principal manufacturing facility in Towanda, Pa. The acquisition will expand JELD-WEN’s manufacturing footprint in the United States, give the company access to new and proprietary technology, and will increase its focus on environmentally-friendly wood composite exterior products, according to the company.
“CMI’s existing management team, led by Bob Merrill, will remain in place to realize efficiencies that will benefit CMI’s existing customers in all product lines,” says Jim Morrison, executive vice president of JELD-WEN. Such efficiencies include expanded molded door facing designs under both the JELD-WEN and CraftMaster brand names, broader footprint of molded door facing facilities in strategic locations around the U.S. to better serve our customers, and a more responsive and safer supply chain. Customers will benefit from JELD-WEN’s enhanced competitiveness derived from greater capacity utilization and scale.”
“We see the new relationship with JELD-WEN as a great fit for both organizations,” says Bob Merrill, CMI’s president and CEO. “CMI and JELD-WEN share the same strong principles of quality products, manufacturing excellence and outstanding customer service. We are pleased with JELD-WEN’s commitment to support and grow CMI’s product lines … ”
CMI officials declined to comment on the story and referred DWM‘s request for comment to JELD-WEN.
Jeld Wen will probably lay off many workers. They have closed factories and laid hundreds off in the last 2 yrs. Even VP’s have left the company since Onex owes 58% (Onex is like Bain Corp). Jeld Wen continues to have low moral within its ranks. Stock Holders and 401’k have been greatly reduced and yet JW has the $$$ to invest Craftmaster. Many Stock Holders who took 2nd mortgages are going to have to foreclose on their homes, because Jeld Wen Has not and Will not give stock holders the right to sell their stock back. This is not good news for Craftmaster employees.