NEWPORT BEACH, CA - RSI Home Products Inc. regains sole ownership after completing a buyback of 50 percent equity interest from Onex Corp. and its affiliates for $323 million.
The Canadian-based Onex Group made a $318 million preferred equity investment in the cabinet and countertop manufacturing firm in 2008. Onex, which also owns interest in JELD-WEN, announced the sale of RSI on Feb. 22, 2013.
Three days later, on Feb. 25 RSI announced it had completed the transaction for a bond offering, raising $525 million in five-year, senior secured second lien notes. Funds from the bond will be used for the purchase of Onex’s equity as well as to repay existing bank loans.
"The new financial structure is beneficial to the company," founding Chairman Ronald M. Simon of RSI Holding LLC, parent company of RSI Home Products Inc. and RSI Development, said in a statement. "It will allow us to leverage the financial benefits of the bond market, while maximizing our ability to remain flexible and support company growth."
In terms of units sold, RSI Home Products is reportedly the largest manufacturer of kitchen cabinets, bathroom vanities, medicine cabinets and cultured marble countertops. Products are sold in the United States and Canada through national retail chains including Home Depot and Lowes, as well as dealer networks. Founded in 1989, RSI Home Products has manufacturing and distribution facilities in California, North Carolina, Texas and Mexico. The company employs more than 3,500 people.