Onex to Take Majority Stake in Jeld-Wen
Amending its May agreement to invest in Jeld-Wen Holding Inc., Onex Corp. now plans to take a majority stake in the Oregon-based door and window manufacturer. When the transaction is complete, Philip Orsino will also step in as Jeld-Wen president, the Toronto-based investment firm reports.
Under the new agreement, Onex and its affiliates will invest $864 million in Jeld-Wen, compared to the previously announced $675 million. The investment will give the investment group approximately a 58 percent ownership stake in the door and window maker, up from the previously contemplated 39 percent ownership interest, officials state.
Stepping in as president when the transaction closes, Orsino is Onex's building products industrial partner. Serving as CEO of Masonite International until 2005, he has spent more than 25 years in the global door and window manufacturing business, and will have broad oversight of global operations, it is noted.
“I look forward to welcoming Philip to our executive team," says Rod Wendt, who will continue as Jeld-Wen CEO. "Many of us at Jeld-Wen have known him for years and we admire his leadership in our industry. I have a great deal of respect for his knowledge, track record and expertise. He will be instrumental in our future growth.”
The transaction is anticipated to close in the third quarter subject to customary regulatory approvals, completion of the associated debt financing and other customary conditions. The balance of the company will continue to be owned by the trust of Richard Wendt, members of the Wendt family, Jeld-Wen employees and other existing shareholders. Jeld-Wen’s corporate culture will remain firmly rooted and intact, and the manufacturer will continue as a private company headquartered in Klamath Falls, Ore., it is noted.
“Our investment thesis for this proprietary opportunity has not changed,” says Anthony Munk, a managing director of Onex. “We believe Jeld-Wen is very well positioned to take advantage of the eventual recovery in global housing markets given its competitive position and well-known brands in markets around the world.”