Onex Corp. Sells Remaining Jeld-Wen Shares

August 19th, 2021 by Drew Vass

Officials for Onex Corp. announced yesterday that one of its funds, Onex Partners III, and certain co-investors, sold approximately 14.9 million shares of Jeld-Wen Holding Inc. The move marks a selloff of final Jeld-Wen shares for the firm, which were sold at a net price of $28.50 each. Gross proceeds to the Onex Group from the transaction are approximated at $425 million, of which the firm’s share was approximately $110 million as a limited partner in the fund and a co-investor. The move marks a total exit from Jeld-Wen for Onex, which held ownership in the door and window manufacturer since 2011.

Officials for Jeld-Wen say the company chose to purchase $200 million (approximately half) of the involved shares. “We believe this represents the natural evolution of our company’s ownership journey and reinforces the confidence that our leadership team, along with our board of directors, has in our financial position and future growth potential,” a company representative tells [DWM].

Officials for Jeld-Wen say the investment firm has been “monetizing its investment over time.” According to a case study published by Onex, the firm worked with Jeld-Wen to take the business public in January 2017, offering 28.75 million shares of its common stock. The initial offering was priced at $23.00 per share, producing gross proceeds of $661 million. According to the case study (available on Onex’s website and labeled 2011 to present), “through secondary offerings and other realizations from the company, the Onex Partners III Group has realized approximately $2.4 billion on the investment and continues to hold 15% of the company (of which Onex’ interest is 4%).”

“When Onex initially invested in Jeld-Wen in 2011, we were a very different company,” a company representative for Jeld-Wen tells [DWM]. “Since that time, we developed a well-defined growth strategy and [the Jeld-Wen Excellence Model] operating system, created a premier performing culture, delivered both growth and margin expansion, and strengthened our financial position through disciplined financial management.”

A sell-off by Onex represents “the natural evolution of Jeld-Wen’s ownership journey,” officials assure, as the company’s phase of private equity ownership is completed, with nearly “100% float now held by public investors.”

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