CHARLOTTE, N.C. - Jeld-Wen Holding, Inc. (NYSE:JELD) made a public offering of 12.5 million shares of its common stock by Onex Partners at $33.75 per share. Onex has also granted the underwriters a 30-day option to purchase up to 1,875,000 additional shares of common stock. The offering was expected to close on November 20, 2017.
The company is not selling any shares and will not receive any proceeds from the sale of shares by the selling stockholders in this offering. Barclays, Citigroup, Credit Suisse, J.P. Morgan, Baird, and Goldman Sachs & Co. LLC are acting as joint book-running managers in the offering. BofA Merrill Lynch, Deutsche Bank Securities, RBC Capital Markets, and Wells Fargo Securities are acting as co-managers in the offering.
This summer, Jeld-Wen agreed to acquire the Domoferm Group of companies. a Gänserndorf, Austria, manufacturer of steel doors, steel door frames, and fire doors for commercial and residential markets; and the Kolder Group, an Australian provider of shower enclosures, closet systems, and related building products. Established in 1992, Kolder provides supply and installation services to builders and commercial property developers in the major metropolitan markets of eastern Australia.
Jeld-Wen reported net revenues for the three months ended September 30, 2017 increased $58.9 million, or 6.3 percent, to $991.4 million, compared to $932.5 million for the same period last year. The increase was driven by growth in core revenues of 2 percent, the favorable impact of foreign exchange of 2%, and 3% from the contribution of recent acquisitions. The company defines core revenues to exclude the revenue impact of foreign exchange and acquisitions completed in the last twelve months.
Core revenues increased in all three geographic reporting segments. Gross margin increased $22.5 million, or 11.0%, to $228.2 million, compared to $205.7 million for the same period last year. The increase in gross margin was due to profitable core growth, the contribution from recent acquisitions, and a non-recurring charge to material costs incurred in the same period last year, partially offset by operational headwinds from specific product lines.
Net income increased $5.2 million, or 11.3%, to $51.3 million, compared to $46.1 million in the same quarter last year. In North America -net revenues increased $19.7 million, or 3.6%, to $572.0 million, due to an increase in core revenues of 2% and a 2% contribution from recent acquisitions. The core revenue growth was primarily due to favorable pricing.
JELD-WEN, founded in 1960, is one of the world’s largest door and window manufacturers, operating over 120 manufacturing facilities in 19 countries located primarily in North America, Europe and Australia. Headquartered in Charlotte, N.C., JELD-WEN designs, produces and distributes an extensive range of interior and exterior doors, wood, vinyl and aluminum windows and related products for use in the new construction and repair and remodeling of residential homes and non-residential buildings. JELD-WEN products are marketed globally under the JELD-WEN brand, along with several market-leading regional brands such as Swedoor and DANA in Europe and Corinthian, Stegbar, and Trend in Australia.
Have something to say? Share your thoughts with us in the comments below.