Clearlake Completes Exit of its Investment in Janus International

Rhea-AI Summary

Clearlake Capital Group, L.P. announced the sale of its remaining shares of Janus International Group, Inc. (NYSE: JBI) and fully exited its investment in December. Under Clearlake's ownership, Janus more than doubled EBITDA and executed numerous initiatives, including developing new access control technologies and integrating seven acquisitions. Janus serves a global customer base with over 10,000 active customers worldwide and has a value proposition centered around the manufacturing of customized built-to-order products, supported by comprehensive installation services and the development of technologies and content.

Positive

• Janus more than doubled EBITDA under Clearlake's ownership
• The Company executed several initiatives, including the development of new access control technologies and the purchase and integration of seven acquisitions
• Janus serves a global customer base with over 10,000 active customers worldwide

Negative

• None.

Insights

Market Research Analyst

The divestment of Clearlake Capital Group's remaining shares in Janus International Group represents a significant event that merits attention from a market research perspective. The exit of a major shareholder, especially one that has been instrumental in the company's strategic growth initiatives, can signal a transition phase for Janus. This move could potentially affect investor sentiment and stock performance, as the market absorbs the implications of the change in ownership structure.

With Janus having more than doubled its EBITDA under Clearlake's ownership, the focus now shifts to whether the company can sustain this growth trajectory independently. The strategic initiatives implemented during Clearlake's involvement, such as the development of proprietary technologies and international expansion, will likely continue to influence Janus's market position and financial performance. The market will closely monitor how Janus capitalizes on these initiatives to maintain or enhance its competitive edge.

Moreover, the company's emphasis on organic and inorganic growth, particularly through strategic acquisitions and the development of the Nokē brand, suggests an aggressive approach to market consolidation and product differentiation. This could have long-term implications for Janus's market share and its ability to generate recurring revenue streams, which are critical factors for investors evaluating the company's future prospects.

Financial Analyst

The announcement of Clearlake Capital Group's exit from Janus International Group after a period of significant EBITDA growth is a key financial development. The reported 140% increase in EBITDA is indicative of effective management and strategic execution, which can be appealing to investors seeking companies with proven financial performance. However, the sustainability of this performance post-Clearlake's exit remains a question for current and potential shareholders.

The financial implications of the seven acquisitions made under Clearlake's guidance are also of interest. The integration of these acquisitions and their contribution to Janus's overall financial health will be a critical area to assess. Successful integrations can lead to synergies and cost savings, while unsuccessful ones can result in financial strain and operational challenges.

Additionally, the investments made in proprietary technologies, such as the access control technologies under the Nokē brand, are likely to impact future revenue streams and margins. The market will be assessing the return on these investments and their contribution to Janus's competitive positioning in the building solutions and technology sectors.

Industry Analyst

The strategic transformation of Janus International Group under Clearlake Capital's ownership, particularly in the context of the building solutions and access control technology sectors, is noteworthy. The emphasis on organic growth through the R3 revenue profile and international expansion, as well as inorganic growth via strategic acquisitions, positions Janus as a potentially leading provider in its market segments.

The vertical integration efforts to capture margin opportunities and the focus on operational efficiencies through lean manufacturing are indicative of Janus's commitment to cost management and profitability. These industry-specific strategies are essential for maintaining competitiveness, especially in the industrials sector where margins can be tight.

Janus's ability to serve a global customer base with over 10,000 active customers and its value proposition centered around customized built-to-order products and comprehensive services is a significant differentiator. The company's future success will hinge on its ability to continue innovating and adapting to market demands while leveraging its established customer relationships and brand reputation.

Under Clearlake's ownership, Janus more than doubled EBITDA and executed on numerous initiatives under Clearlake's O.P.S.^® value creation playbook

SANTA MONICA, Calif., Jan. 18, 2024 /PRNewswire/ -- Clearlake Capital Group, L.P. ("Clearlake" or "the Firm"), an investment firm focused on the industrials, technology, and consumer sectors, today announced that the Firm sold its remaining shares of Janus International Group, Inc. (NYSE: JBI) ("Janus" or the "Company") and fully exited its investment in December.

Janus is a global manufacturer and supplier of turn-key building solutions and access control technologies for the self-storage, commercial, and industrial sectors. Clearlake acquired Janus in February 2018 in partnership with the founding management team and remained its largest shareholder when Janus listed on the New York Stock Exchange in June 2021. Under Clearlake's ownership, the Company executed several initiatives, including but not limited to the development of new access control technologies and the purchase and integration of seven acquisitions.

"We believe the growth and strategic transformation executed at Janus in partnership with management is a compelling story," said José E. Feliciano, Co-Founder and Managing Partner, and Colin Leonard, Partner, at Clearlake. "Our thesis to partner with Janus was centered around the Company's market position, value proposition, margins, and free cash flow, as well as the potential we saw for both organic and inorganic growth. Together with management, we achieved over 140% EBITDA growth and made investments to transition the business to a public company. Clearlake is proud to have partnered with CEO Ramey Jackson and his management team and looks forward to following the Company's future successes."

Ramey Jackson, Chief Executive Officer of Janus, said: "We are proud of the partnership with Clearlake and the experience and resources they dedicated to our business over the years. It has been an absolute pleasure working alongside their team to build Janus into the industrial technology platform it is today."

"Janus is an example of our O.P.S.^® (Operations, People, and Strategy) value creation framework in action," added Nate Mejías, Principal at Clearlake. "In a few short years, Ramey and his team executed an effective buy-and-build playbook, bolstered the management team, diversified the business, grew internationally, and led the adoption of additional technologies within the category."

These organic and inorganic initiatives were centered on the goal of building a leading global provider of building solutions and related technologies for the self-storage, commercial, and industrial markets. Organic growth initiatives included developing Janus's recurring Restore, Rebuild, and Replace ("R3") revenue profile, increasing the company's addressable market by expanding within the commercial and industrial segments, growing locations and sales internationally, vertically integrating certain elements of the business to capture margin opportunities, driving operational efficiencies through procurement, plant investments and lean manufacturing initiatives, and making investments behind Janus's people and customers.

Utilizing Clearlake's experience in software and technology to develop new content for the self-storage ecosystem, Janus developed proprietary access control technologies now sold under the Nokē brand. Inorganically, Janus closed seven strategic add-ons and developed an integration framework, including the acquisitions of DBCI, Nokē, and Betco, among others.

Today, Janus serves a global customer base with over 10,000 active customers worldwide through a value proposition centered around the manufacturing of customized built-to-order products, supported by value-added design, comprehensive installation services, and the development of technologies and content.

About Clearlake
Founded in 2006, Clearlake is an investment firm operating integrated businesses across private equity, credit, and other related strategies. With a sector-focused approach, the firm seeks to partner with experienced management teams by providing patient, long term capital to dynamic businesses that can benefit from Clearlake's operational improvement approach, O.P.S.^® The firm's core target sectors are technology, industrials, and consumer. Clearlake currently has over $70 billion of assets under management, and its senior investment principals have led or co-led over 400 investments. The firm is headquartered in Santa Monica, CA with affiliates in Dallas, TX, London, UK, Dublin, Ireland, and Singapore. More information is available at www.clearlake.com.

Media Contact:
Jennifer Hurson
Jhurson@lambert.com

 

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SOURCE Clearlake Capital Group

FAQ

When did Clearlake sell its remaining shares of Janus International Group, Inc.?

Clearlake announced the sale of its remaining shares of Janus International Group, Inc. and fully exited its investment in December.

What is the ticker symbol for Janus International Group, Inc.?

The ticker symbol for Janus International Group, Inc. is JBI.

What are the main initiatives executed by Janus under Clearlake's ownership?

Under Clearlake's ownership, Janus executed several initiatives, including the development of new access control technologies and the purchase and integration of seven acquisitions.

How many active customers does Janus serve globally?

Janus serves a global customer base with over 10,000 active customers worldwide.

What is the value proposition of Janus International Group, Inc.?

Janus has a value proposition centered around the manufacturing of customized built-to-order products, supported by comprehensive installation services and the development of technologies and content.