JELD-WEN Completes Sale of Towanda, PA Facility as a Result of Court-Ordered Divestiture Process

Rhea-AI Summary

JELD-WEN Holding (NYSE: JELD) has completed the court-ordered divestiture of its Towanda, Pennsylvania facility to Woodgrain Inc. The transaction, which closed on January 17, 2025, was valued at $115 million, subject to customary closing adjustments. The sale fulfills JELD-WEN's legal obligation to divest the Towanda business as mandated by court order.

Positive

• Received $115 million in cash from the facility sale

Negative

• Forced to divest a facility due to court order
• Loss of operational capacity through mandatory business divestiture

Insights

Financial Analyst

The $115 million divestiture of JELD-WEN's Towanda facility represents a significant forced asset sale that will impact the company's financials and operational capacity. The court-ordered nature of this divestiture stems from antitrust concerns and weakens JELD-WEN's market position in door manufacturing. For context, Towanda was a key doorskin manufacturing facility that provided vertical integration benefits. The sale to Woodgrain Inc. will likely reduce JELD-WEN's manufacturing margins and force them to potentially source doorskins from competitors. The transaction value appears reasonable but the strategic implications are concerning. This will affect JELD-WEN's cost structure and competitive positioning in the $3B+ North American door market. Simple take: Imagine being forced to sell a profitable factory to your competitor - that's what happened here and it will likely increase JELD-WEN's costs going forward.

Legal Expert

This divestiture concludes a major antitrust case that began with JELD-WEN's acquisition of CMI in 2012, which was later challenged by Steves and Sons. The forced sale demonstrates the increasing scrutiny of vertical integration in building products manufacturing and sets a precedent for retrospective merger reviews. The completion of this court-ordered sale removes a significant legal overhang but also highlights the risks of aggressive M&A strategies in concentrated markets. The implications extend beyond JELD-WEN, serving as a warning to other building products manufacturers about anticompetitive vertical integration. Simple take: The government forced JELD-WEN to undo a past acquisition because it gave them too much power in the market, similar to being told to return an unfairly obtained advantage.

CHARLOTTE, N.C., Jan. 20, 2025 /PRNewswire/ -- JELD-WEN Holding, Inc. (NYSE: JELD) ("JELD-WEN" or the "Company"), a leading global manufacturer of building products, today announced that, in compliance with the court-ordered divestiture of its Towanda, Pennsylvania business, JELD-WEN has completed its previously announced sale of Towanda to Woodgrain Inc. on January 17, 2025 for a purchase price of $115 million, subject to customary closing adjustments.

About JELD-WEN, Inc.
JELD-WEN Holding, Inc. (NYSE: JELD) is a leading global designer, manufacturer and distributor of high-performance interior and exterior doors, windows, and related building products serving the new construction and repair and remodeling sectors. Based in Charlotte, North Carolina, the company operates facilities in 15 countries in North America and Europe and employs approximately 18,000 associates dedicated to bringing beauty and security to the spaces that touch our lives. The JELD-WEN family of brands includes JELD-WEN® worldwide, LaCantina® and VPI™ in North America, and Swedoor® and DANA® in Europe. For more information, visit corporate.JELD-WEN.com or follow LinkedIn.

Forward Looking Statements
This press release includes forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are generally identified by our use of forward-looking terminology, including the terms "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "might," "plan," "potential," "predict," "seek," or "should," and, in each case, their negative or other various or comparable terminology. These forward-looking statements are based upon the company's current plans, assumptions, beliefs, and expectations. Forward-looking statements are subject to the occurrence of many events outside of the company's control. The Company's actual results could differ materially from the results contemplated by these forward-looking statements due to a number of factors, including, but not limited to: the outcome of any objection to the court-ordered divestiture and any related appeals; third-party costs incurred by the Company related to the transaction; the impact of our strategic transformation journey, footprint rationalization, cost reduction and modernization initiatives; the impact of acquisitions and divestitures on our business and our ability to maximize value and integrate operations; our pipeline of productivity projects; our expectations, beliefs, plans, objectives, prospects, assumptions, or other future events; risks and uncertainties related to the Company's current financial expectations and projections; and other factors discussed in the Company's Annual Report on Form 10-K for the year ended December 31, 2023 and other filings with the U.S. Securities and Exchange Commission.

Media Contact: 
JELD-WEN Holding, Inc.
Melissa Farrington
Vice President, Enterprise Communications
262-350-6021
Mfarrington@jeldwen.com 

Investor Relations Contact: 
James Armstrong
Vice President, Investor Relations
704-378-5731
jarmstrong@jeldwen.com

View original content to download multimedia:https://www.prnewswire.com/news-releases/jeld-wen-completes-sale-of-towanda-pa-facility-as-a-result-of-court-ordered-divestiture-process-302355292.html

SOURCE JELD-WEN Holding, Inc.

FAQ

How much did JELD-WEN sell its Towanda facility for in January 2025?

JELD-WEN sold its Towanda, Pennsylvania facility to Woodgrain Inc. for $115 million, subject to customary closing adjustments.

Why did JELD-WEN sell its Towanda, PA facility?

JELD-WEN sold the Towanda facility as part of a court-ordered divestiture process, meaning the sale was legally mandated.

When did JELD-WEN complete the sale of its Towanda facility?

JELD-WEN completed the sale of its Towanda facility to Woodgrain Inc. on January 17, 2025.

Who purchased JELD-WEN's Towanda, Pennsylvania facility?

Woodgrain Inc. purchased JELD-WEN's Towanda, Pennsylvania facility.