windows and doors

Nautic Sells Window Maker to Pella

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Nautic Partners has sold its portfolio company Custom Window Systems to Pella Corporation. Nautic acquired Custom in July 2014 from Highlander Partners.

Custom Window Systems is a manufacturer of impact-resistant and non-impact, vinyl and aluminum, windows, doors, and porch enclosures. The company’s products are primarily used in the repair and remodeling markets in the single-family and multi-family housing sectors in Florida and other coastal regions that maintain strict building codes due to exposure to high winds, tropical storms, and hurricanes.

Custom, led by CEO John Manzi, was founded in 1986 and has a 375,000 square foot manufacturing facility and headquarters in Ocala, FL (www.cws.cc). “We greatly enjoyed working with the Nautic team. They have been a stellar partner throughout Custom’s evolution over the past several years,” said Mr. Manzi. “We look forward to the next chapter for Custom under Pella ownership.”

“We thank John Manzi, Roger Sim, and the entire team for their accomplishments. Thanks to them, the company is well-positioned for continued growth, with high-quality products, a streamlined and efficient production facility, and plenty of capacity. It has been a pleasure partnering with them to achieve the goals that we had,” said Chris Pierce, a managing director of Nautic.

Nautic is a middle-market private equity firm that makes majority equity investments of $25 million to $75 million in companies that are active in the healthcare, industrial products, and outsourced services sectors. In March 2019, the firm held a final closing of Nautic Partners IX LP at its hard cap with $1.5 billion of limited partner commitments. Nautic is headquartered in Providence, RI (www.nautic.com).

“Custom enhances our product offering and increases our penetration in the large and growing Florida area,” said Tim Yaggi, president and CEO of Pella. “We expect to grow faster together by leveraging Pella’s capabilities and Custom’s regional knowledge, impact-resistant product lines and strong customer relationships.”

Pella is a privately held maker of windows and doors with 15 manufacturing locations, more than 200 showrooms, and nearly 7,000 employees. The company is headquartered in Pella, IA (www.pella.com).

BlackArch Partners and KeyBanc Capital Markets were the financial advisors to both Custom and Nautic.

© 2019 Private Equity Professional | October 4, 2019

Bounds and ORIX Exit Thermo-Tech

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Harvey Building Products, a portfolio company of Dunes Point Capital, has acquired Thermo-Tech Windows & Doors from Bounds Equity Partners and ORIX Mezzanine & Private Equity.

Thermo-Tech is a manufacturer of vinyl windows and doors that are used for residential repair and remodeling. The company sells its products through a network of more than 500 dealers throughout the Upper Midwest, including locations in Minnesota, Wisconsin, North Dakota, South Dakota, Iowa, Michigan, Illinois and Indiana as well as Canada.

Bounds Equity Partners and ORIX Mezzanine & Private Equity acquired Thermo-Tech in September 2015. Thermo-Tech was founded in 1993 and is headquartered 70 miles northwest of Minneapolis in Sauk Rapids, MN (www.ttwindows.com).

Dunes Point acquired Harvey Building Products, a manufacturer of windows and doors and a distributor of other building products such as siding, roofing, decking, and trim, in September 2015. Harvey sells its products directly to professional contractors and builders.  The company has approximately 1,500 employees and operates two manufacturing facilities – one each in New Hampshire and Massachusetts. Harvey also has 13 product showrooms and 36 warehouse locations throughout the East Coast. The company was founded in 1961 and is headquartered near Boston in Waltham, MA (www.harveybp.com).

Dunes Point Capital is a family office and private investment firm that makes control investments in companies operating in the general industrial and energy sectors. Dunes Point targets companies with enterprise values of up to $500 million. The firm was founded in 2013 by Timothy White, a former Senior Managing Director of GSO Capital Partners and Blackstone. Dunes Point is based in Rye, NY (www.dunespointcapital.com).

Bounds Equity makes control investments in companies that are located east of the Rocky Mountains with minimum EBITDA of $1.5 million, and companies within a five-hour drive of Chicago with minimum EDITDA of $750,000. Sectors of interest include building materials and services; business services; consumer products; and specialty manufacturing. The firm was founded in 2009 by Mark Bounds and is based in the Chicago suburb of Highland Park (www.boundsequity.com).

ORIX Mezzanine & Private Equity (OMPE) provides mezzanine debt and equity capital to lower middle market companies that have EBITDA of $5 million or greater.  OMPE makes investments from $10 million to $30 million in a variety of businesses and geographic areas for buyouts, mergers and acquisitions, recapitalizations and refinancings, and growth and expansions situations. The group’s investments are predominately with independent sponsors and also include investments with funded equity sponsors, family offices, and directly with entrepreneurs and management teams. OMPE (www.orixmpe.com) is a business unit of Dallas-based ORIX USA (www.orix.com).

© 2018 Private Equity Professional | March 23, 2018

CD&R Gets Busy in Building Products

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Clayton, Dubilier & Rice (CD&R) has agreed to acquire publicly-traded Ply Gem in a go-private transaction valued at approximately $2.4 billion and has also agreed to acquire, in a separate transaction, Atrium Windows & Doors from Golden Gate Capital. Atrium will be combined with Ply Gem to create an exterior building products company that has total annual revenues of more than $2.4 billion.

Ply Gem (NYSE: PGEM) is a manufacturer of vinyl siding and vinyl and aluminum windows that are used in both new construction and home repair and remodeling. The company’s product line includes windows and patio doors, vinyl and aluminum siding and accessories, designer accents, cellular PVC trim and mouldings, vinyl fencing and railing, stone veneer, roofing and gutterware products. Ply Gem is headquartered in Cary, NC (www.plygem.com).

Similar to Ply Gem, Atrium is a manufacturer of vinyl and aluminum windows and doors that are used in both new construction and home repair and remodeling. The company had $350 million of revenue in 2017. Atrium, led by CEO Ron Cauchi, was founded in 1948 and has three facilities located in Welcome, NC (headquarters); Dallas, TX; and London, ON (www.atrium.com). Golden Gate Capital and Kenner & Company acquired Atrium out of bankruptcy in April 2010.

The combined operations of Ply Gem and Atrium will be headquartered in Cary, NC, and Gary Robinette, currently Chairman and CEO of Ply Gem, will continue as Chairman and CEO.  “The strategic and operational excellence of CD&R and Golden Gate will help strengthen the long-term growth of the new company,” said Mr. Robinette. “This support, along with the expanded business and product portfolio of the new combined company, will establish a stronger window platform with manufacturing scale and channel distribution advantages for customers.”

The Ply Gem and Atrium transactions are expected to close simultaneously in the second quarter of 2018. At closing, CD&R will own 70% of the new privately-held company and Atrium shareholders, which includes Golden Gate Capital, will own 30%. “This is a transformational milestone for two highly complementary businesses,” said Nate Sleeper, a Partner at CD&R.  “Together, Ply Gem and Atrium have a well-positioned platform across North America, a deep set of capabilities to serve customers, and a strong foundation for long-term growth and value creation.”

CD&R invests in European and US-based businesses.  Since founding in 1978, the firm has invested $25 billion in 77 companies across a range of industries with a total transaction value of approximately $100 billion. CD&R was founded in 1978 and is based in New York and London (www.cdr-inc.com).

Golden Gate Capital targets 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).

“We are pleased to continue our partnership with Atrium and look forward to working closely with Ply Gem and CD&R,” said Rajeev Amara, a Managing Director of Golden Gate Capital. “We believe strongly in the long-term growth prospects of joining these two great businesses.”

CD&R has obtained committed financing from Bank of America Merrill Lynch; Barclays; Deutsche Bank Securities; GS Bank USA; JP Morgan; Jefferies Finance; Mitsubishi UFJ Financial Group (MUFG); Natixis; RBC Capital Markets; Societe Generale; and UBS Investment Bank.

© 2018 Private Equity Professional | February 1, 2018

Longroad Exits Hurd Windows and Doors

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Hurd Windows and Doors, a portfolio company of Longroad Asset Management, has been acquired by Sierra Pacific Industries.

Hurd Windows and Doors, acquired by Longroad in December 2008, manufactures windows and doors under the Hurd and Superseal brands. The company’s products are sold through more than 400 distributors in the United States and Canada and in 20 countries worldwide. With factories in Medford and Merrill, WI, Hurd products are manufactured in 600,000 square feet of production space.  The company is headquartered northwest of Wausau in Medford, WI (www.hurd.com).

Sierra Pacific Industries is a third-generation, family-owned forest products company.  The company owns and manages nearly 1.9 million acres of timberland in California and Washington, and is the second largest lumber producer and largest manufacturer of millwork in the United States. Sierra Pacific Industries is headquartered north of Sacramento in Anderson, CA (www.spi-ind.com).

Longroad Asset Management invests in US and Canadian companies with $30 to $300 million in annual revenue and EBITDAS up to $25 million.  Sectors of interest include industrial manufacturing; business and industrial services; consumer products; defense & aerospace; basic materials; building products; construction equipment and services; energy and energy distribution; industrial equipment; metal processing and extrusions; plastic films and extrusions; precision machining and; out of favor or cyclical industries. Longroad has over $500 million in committed capital and since founding in 2001 has invested in more than 15 transactions across a variety of industries.  The firm is based in Stamford, CT (www.longroadllc.com).

The Commercial & Industrial Group of BB&T Capital Markets (www.bbtcapitalmarkets.com) served as the exclusive financial advisor to Hurd Windows and Doors.

2014 PEPD • Private Equity’s Leading News Magazine • 8-4-14

JLL Partners Has Partial Exit of PGT Industries

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JLL Partners has sold 19.4 million shares of PGT Industries under a secondary offering and a share repurchase program of PGT Industries. JLL initially invested in PGT in 2004 and remains its largest shareholder with 28% ownership.

The sale of the PGT shares provided JLL Partners Fund IV, LP, with $143 million of total proceeds. Including prior distributions of $95 million, JLL has now returned 1.5x its cumulative invested capital of $163 million, and at current market prices the firm’s investment in PGT is valued at 2.1x invested capital.

PGT Industries (NASDAQ: PGTI) is a manufacturer and supplier of impact-resistant windows and doors through its WinGuard-branded product line. The company’s impact-resistant products combine aluminum or vinyl heavy-duty frames with laminated glass to provide protection from hurricane-force winds and windborne debris. The company also supplies a complete range of premium, made-to-order and fully customizable aluminum and vinyl windows and doors. PGT Industries is headquartered in Venice, FL (www.pgtindustries.com).

Since the unprecedented downturn in the housing market, JLL has worked closely with PGT management to execute a series of operational and capital markets initiatives to provide the company with financial flexibility and position the business for the impending market recovery. Over the past 18 months, the Florida new home construction market has begun to recover from its historic lows. As a result of PGT’s market leading position and earnings leverage, the company’s EBITDA is rapidly improving.

JLL Partners seeks to invest in companies across a range of manufacturing and service industries. Sectors of specific interest include healthcare services, medical products, food and consumer products, chemicals, broadcasting, transportation, automotive, industrial manufacturing, and distribution. JLL Partners is based in New York (www.jllpartners.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 6-13-13