HIG Makes Bid to Acquire Shapes/Arch Holdings

June 1, 2008

The Miami-based private equity group HIG Capital LLC is making a bid to acquire Shapes/Arch Holdings LLC, parent company of Accu-Weld LLC, the manufacturer of replacement windows and entry doors, and Ultra Hardware Products, according to a report in the Philadelphia Inquirer.

Citing the decline in the construction markets, Shapes/Arch, based in Delair, N.J., filed for Chapter 11 bankruptcy in March. At the time, the company planned to re-organize and emerge from bankruptcy with the financial support of Philadelphia-based Versa Capital Management. Creditors, however, objected and Versa dropped out.

According to The Deal, a new reorganization plan was approved by a New Jersey bankruptcy court last week. Under the plan, HIG Capital has committed to acquiring Shapes/Arch for $90 million at an auction, open to competing bids, scheduled for June 27. A confirmation hearing is scheduled for July 8.

HIG Capital, with more than $7 billion of equity capital under management, is currently involved in the window and door industry through its acquisition of Canadian manufacturer Gienow Windows & Doors last year.

In addition to Accu-Weld and Ultra Hardware, Shapes/Arch also operates Shapes LLC, an aluminum extrusion business.