OpenGate Capital has signed an agreement to acquire the Window & Door division of Royal Building Products, a manufacturer of vinyl window profiles and patio doors, from Axiall Corporation. The transaction is expected to close by the end of March.
The Window & Door division of Royal Building Products (Royal W&D) was founded more than 40 years ago and is a manufacturer of rigid and cellular vinyl window and patio door profiles, as well as interior vinyl shutters and other extruded vinyl products. The division’s products are sold through OEM window & door manufacturers. Royal W&D is headquartered southwest of Toronto in Woodbridge, ON (click HERE for the Royal W&D website).
The buy of Royal W&D is the third transaction announced by OpenGate in the past three months. In January 2016 the firm acquired Power Partners, a maker of power transformers; and in November 2015 signed an agreement to acquire Bois & Materiaux, a distributor of building materials.
OpenGate acquires non-core divisions of larger corporations that have revenues from $50 million to $1 billion. The EBITDA of the divisions can be negative, break even, or positive. The firm was founded in 2005 and is headquartered in Los Angeles with additional offices in New York, Paris, France and São Paulo (www.opengatecapital.com).
Axiall (NYSE: AXLL) is divesting Royal W&D as part of a strategy to focus on its core businesses, the making and marketing of chlorovinyls (caustic soda and chlorine) and aromatics (acetone, cumene, and phenols). The company is presently engaged in a $2.9 billion hostile takeover battle with Westlake Chemical (NYSE: WLK). Axiall is based in Atlanta (www.axiall.com).
© 2016 PEPD • Private Equity’s Leading News Magazine • 2-26-16