JELD-WEN Proceeds to Close Divestiture Transaction
CHARLOTTE, N.C., Dec. 16,
2024 /PRNewswire/ -- JELD-WEN Holding, Inc. (NYSE:
JELD) ("JELD-WEN" or the "Company"), a leading global manufacturer
of building products, today announced that, in compliance with the
court-ordered divestiture of its Towanda,
Pennsylvania business and related assets (collectively,
"Towanda"), JELD-WEN has entered
into an asset purchase agreement for the sale of Towanda to Woodgrain Inc. ("Woodgrain") for
approximately $115 million, subject
to certain adjustments and closing conditions.
"After many years of working through the court-ordered
divestiture of Towanda, we have
now reached an important inflection point in this process. We
continue to evaluate our options in this unprecedented legal
proceeding, but following a thorough review, we have concluded that
it is in the best interest of the Company and its stakeholders to
proceed with closing the transaction at this time. Regardless,
JELD-WEN is well positioned to continue to service and supply its
door customers at the high level they have come to expect from us,"
said Chief Executive Officer William J.
Christensen.
"While we are disappointed with the court ruling, we remain
fully committed to advancing our transformation efforts to solidify
our strong and resilient foundation. We will persist in investing
in our business, focusing on initiatives that drive both cost
reductions and sustainable growth," said Mr. Christensen.
"Through this transformation, we see significant opportunities
for self-driven improvements that will enhance our operations and
position us for long-term success. I am confident that JELD-WEN has
a bright future ahead, and we are dedicated to taking the necessary
steps to unlock our full potential," concluded Mr. Christensen.
Given the uncertainty around volumes related to the assignment
of customer contracts and our obligations within transition
services and supply agreements, the precise future financial impact
to JELD-WEN is unclear. However, based on management's best
estimates at this time, the Company believes that the sale of
Towanda would result in an annual
reduction of approximately $150
million to $200 million of
revenue and approximately $25 million
to $50 million of EBITDA during the
twelve months following the closing of the divestiture. We expect a
non-cash pre-tax impairment charge of approximately $25 million to $35
million and expect the divestiture to be approximately
neutral to net debt leverage.
Under the court-ordered asset purchase agreement, the sale of
Towanda is currently expected to
close as early as December 31,
2024.
About JELD-WEN, Inc.
JELD-WEN Holding, Inc. (NYSE:
JELD) is a leading global designer, manufacturer and distributor of
high-performance interior and exterior doors, windows, and related
building products serving the new construction and repair and
remodeling sectors. Based in Charlotte,
North Carolina, the company operates facilities in 15
countries in North America and
Europe and employs approximately
18,000 associates dedicated to bringing beauty and security to the
spaces that touch our lives. The JELD-WEN family of brands includes
JELD-WEN® worldwide, LaCantina® and VPI™ in North America, and Swedoor® and DANA® in
Europe. For more information,
visit corporate.JELD-WEN.com or follow LinkedIn.
Forward Looking Statements
This press release
includes forward-looking statements within the meaning of the U.S.
Private Securities Litigation Reform Act of 1995. Forward-looking
statements are generally identified by our use of forward-looking
terminology, including the terms "anticipate," "believe,"
"continue," "could," "estimate," "expect," "intend," "may,"
"might," "plan," "potential," "predict," "seek," or "should," and,
in each case, their negative or other various or comparable
terminology. These forward-looking statements are based upon the
company's current plans, assumptions, beliefs, and expectations.
Forward-looking statements are subject to the occurrence of many
events outside of the company's control. The Company's actual
results could differ materially from the results contemplated by
these forward-looking statements due to a number of factors,
including, but not limited to: the possibility that the transaction
may not be completed in a timely manner or at all; the outcome of
any motion to vacate the divestiture order, any objection to the
court-ordered divestiture, and any related appeals; third-party
costs incurred by the Company related to the transaction; risks and
uncertainties related to the Company's current financial
expectations and projections; and other factors discussed in the
Company's Annual Report on Form 10-K for the year ended
December 31, 2023 and other filings with the U.S. Securities
and Exchange Commission.
Media Contact:
JELD-WEN Holding, Inc.
Melissa Farrington
Vice President, Enterprise Communications
262-350-6021
Mfarrington@jeldwen.com
Investor Relations Contact:
James Armstrong
Vice President, Investor Relations
704-378-5731
jarmstrong@jeldwen.com
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SOURCE JELD-WEN Holding, Inc.