Pella Corp. announced the divestiture of its two luxury businesses, Duratherm Window Company LLC and Michael Reilly Design LLC d/b/a Reilly Architectural, as part of its strategic planning process and routine evaluation of its industry position. The transactions will be completed by Aug. 1, 2024.
Terms of the agreement
After an extensive search to select the right buyers that will set both companies up for continued success, Pella entered into the following agreements:
- Duratherm is being purchased back by Tim Downing, who owned the company for over 30 years prior to the Pella acquisition and has continued to lead Duratherm through Pella’s tenure.
- Reilly is being purchased by Stately Doors & Windows, a luxury business based in Texas. Reilly and Stately are complementary businesses serving the luxury, custom market and together will expand their capabilities and geographic footprint. Stately is part of Kin Capital Partners, who owns several custom-building materials manufacturers and distributors.
Impacted team members include approximately 165 from Reilly and 60 from Duratherm. These team members will be offered support as they transition to new employment opportunities within these companies.
Pella's response
"While Pella has learned a lot about the luxury market over the last seven years, we have found that there are vast differences in our business models which prohibit us from gaining the synergy we need to deliver on our growth strategy," says Pella CEO Tim Yaggi. "The divestiture of Duratherm and Reilly reflects Pella's strategy to enhance our capabilities in the fastest growing geographies and channels, and focus on high margin, high growth product segments that can create scale."
