Springs Window Fashions, the second largest provider of custom window covering products in the world and a portfolio company of Golden Gate Capital, has entered into an agreement to be acquired by AEA Investors and British Columbia Investment Management Corporation (BCI). Golden Gate acquired Springs Window in June 2013 from Heartland Industrial Partners and the Close family.
Springs Window manufactures and sells custom and stock window coverings including blinds, shades, and specialty treatments, and drapery hardware to retail and commercial customers, as well as independent designers, franchisors and decorators. Company-owned and third party brands include Bali, Graber, SWFContract, MechoSystems, Horizons, Mariak and SunSetter. The company was founded in 1939 and has over 8,000 employees located at 15 facilities in the United States and Mexico. The company is headquartered near Madison in Middleton, WI (www.springswindowfashions.com).
During Golden Gate’s term of ownership, Springs Window expanded into new markets, invested in sales and marketing resources, and built its portfolio of products through five add-on acquisitions. “We have enjoyed a strong and collaborative partnership with the Springs Window team over the past five years,” said Rajeev Amara, Managing Director at Golden Gate Capital. “During that time, the company has significantly expanded its offerings into highly complementary areas and essentially doubled the size of the business.”
Golden Gate Capital invests in companies across a range of industries and transaction types, including going-privates, corporate divestitures, recapitalizations, and public equity investments. The firm has approximately $15 billion of capital under management and is based in San Francisco (www.goldengatecap.com).
Springs’ senior management team, led by CEO Eric Jungbluth, will remain with the company and will continue to maintain a minority ownership position under AEA and BCI ownership. “We are excited to be working with AEA Investors and BCI after a successful partnership with Golden Gate. Springs has enjoyed many years of growth and expansion into new product areas under Golden Gate’s ownership,” said Mr. Jungbluth. “We look forward to partnering with AEA Investors and BCI and further building our market presence.”
“Springs represents an exciting opportunity to invest in a highly attractive segment of the building products industry,” said Brian Hoesterey, President of AEA Investors. “Its market leadership, well-known brands, and strong relationships with key customers and suppliers make us excited to partner with Eric and his team. We look forward to supporting them as they continue to grow their business both organically and through acquisitions.”
AEA makes equity and debt investments in middle market companies that operate in the following sectors: retail and consumer products, services, specialty chemicals, and value-added industrial products. The firm manages approximately $10 billion of capital. AEA was founded in 1968 and is headquartered in New York (www.aeainvestors.com).
“We look forward to working with AEA and Springs’ management team to build on the company’s successful track record as a leader in window coverings,” said Jim Pittman, Senior Vice President, Private Equity at BCI. “This investment allows our clients to invest in a high-quality company with strong growth potential.”
BCI is one of Canada’s largest institutional investors with managed net assets of C$135 billion as of March 2017. The firm’s clients include public sector pension plans, public trusts, and insurance funds and it invests across all major asset classes including private equity. BCI is headquartered in Victoria, BC (www.bci.ca).
Barclays, Deutsche Bank and Nomura have provided committed bank financing to support this transaction which is expected to close in June 2018.
Barclays was the financial advisor to Springs Window and Golden Gate Capital.
© 2018 Private Equity Professional | April 24, 2018
