Bloomberg News

Onex Completes $871 Million Majority Acquisition of Jeld-Wen

October 03, 2011

(Adds revised deal terms in fourth paragraph.)

Oct. 3 (Bloomberg) -- Onex Corp., Canada’s largest private- equity firm, completed an $871 million acquisition of a majority stake in Jeld-Wen Holding Inc., a maker of residential doors and windows.

Onex paid $700 million for 58 percent of Klamath Falls, Oregon-based Jeld-Wen’s preferred stock and a $171 million convertible note that can be redeemed within 18 months with proceeds from asset sales, the Toronto-based firm said today in a statement.

Onex, which manages about $14 billion and focuses on North American buyouts, is betting on an “eventual recovery in global housing markets,” Anthony Munk, an Onex managing director, said in today’s statement. The firm has partnered with Philip Orsino, former chief executive officer of Masonite International Corp., to expand in building products. Orsino was named president and a director of Jeld-Wen in August.

Onex said in August it would pay $675 million for the equity stake, plus a $189 million convertible note. That deal was increased from a May agreement, when the private-equity firm said it would pay $475 million for 39 percent of the door manufacturer. The stake is part of Onex Partners III fund, which is now 40 percent invested, the company said today.

Jeld-Wen last week completed a $460 million bond offering to refinance debt.

--Editors: Steven Crabill, Larry Edelman

To contact the reporter on this story: Beth Jinks in New York at bjinks1@bloomberg.net

To contact the editor responsible for this story: Christian Baumgaertel at cbaumgaertel@bloomberg.net


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