Olympus Partners has sold Woodcraft Industries, a kitchen and bath cabinet manufacturer, to Quanex Building Products for $248 million in cash. Woodcraft has been a portfolio company of Olympus since January 2007 when it acquired the company from Behrman Capital.
Woodcraft provides doors and components to OEMs in the kitchen and bathroom cabinet industry. The company supplies an array of hardwood and engineered wood products including doors, face frames, moldings, drawer fronts, and other components. Woodcraft serves the stock, semi-custom, and custom segments of the kitchen and bathroom cabinet markets. The company has 13 manufacturing facilities in North America and employs about 1,500. Woodcraft is headquartered north of Minneapolis in St. Cloud, MN (www.woodcraftind.com).
In the first year post acquisition, Woodcraft is expected to add $240 million in revenues at a 13% EBITDA margin to Quanex. Woodcraft’s current management team, led by President and CEO Dale Herbst, will continue to operate Woodcraft from its St. Cloud headquarters as a stand-alone, wholly-owned subsidiary of Quanex.
“Olympus has been a great partner to Woodcraft, supporting growth initiatives, operational improvements and broadening our product offering. They have helped to position us well for continued growth as industry tailwinds accelerate,” said Mr. Herbst.
Olympus, with $5.5 billion of total capital under management, provides equity capital for middle market management buyouts and for companies needing capital for expansion. Sectors of interest include restaurants, consumer products, healthcare services, financial services and business services. The firm was founded in 1988 and is based in Stamford (www.olympuspartners.com).
Quanex Building Products (NYSE:NX) manufacturers window components that include flexible insulating glass spacers, extruded vinyl profiles, window and door screens, solar panel sealants, and precision-formed metal and wood products for original equipment manufacturers in the residential and commercial window and door industries. The company – with annual sales of approximately $620 million – sells its products through its direct sales force, distributors, and independent sales agents. Quanex is headquartered in Houston (www.quanex.com).
Harris Williams advised Woodcraft. The transaction was led by Mike Hogan of Harris Williams’ Building Products & Materials Group and Glenn Gurtcheff, Ryan Freeman and Andy Warczak of the firm’s Consumer Group.
Wells Fargo was the financial advisor to Quanex. Quanex will finance the $248 million purchase price with a $310 million term loan and borrowings under a new $100 million revolver.
© 2015 PEPD • Private Equity’s Leading News Magazine • 11-3-15
