Onex Corp. has announced the completion of its investment in window and door manufacturer Jeld-Wen Holding and looks forward to the eventual recovery in housing markets around the world.
“This is a very exciting time for Jeld-Wen,” commented Rod Wendt, CEO of Klamath Falls, Ore.-based Jeld-Wen. “We believe that Onex's strategic guidance and experience combined with our strong balance sheet, brand and market position will allow us to further grow the company and strengthen our competitive position."
The total investment of $871 million includes $689 million from Onex Partners III, of which Onex’s share was $124 million as a limited partner in the Fund, and Onex’s $182 million investment as a co-investor in the transaction. Onex intends to offer a portion of this co-investment to its third-party limited partners. With the completion of the Jeld-Wen investment, Onex Partners III is approximately 40% invested.
The Onex Group’s total investment of $871 million includes: $700 million of convertible preferred stock to acquire a 58% ownership stake and a $171 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. In connection with the acquisition, Jeld-Wen completed a $460 million bond offering, the proceeds of which in combination with the Onex Group’s investment were used to refinance the company’s existing debt.
The balance of the company continues to be owned by the trust of the late founder. Richard Wendt, members of the Wendt family, Jeld-Wen employees and other existing shareholders. Jeld-Wen's corporate culture remains firmly rooted and intact, with the company continuing to be privately owned.
“As an industry-leading business with tremendous brand awareness, strong market positioning and truly global operations, Jeld-Wen fits very well with our investment approach,” said Anthony Munk, a managing director of Onex. “We are excited to be working with the Jeld-Wen team to build value and take advantage of the eventual recovery in global housing markets.”