News Summary
JELD-WEN Holding, Inc. has finalized the sale of its manufacturing facility in Towanda, Pennsylvania to Woodgrain Inc. for $115 million, following a court order due to antitrust violations. This sale marks a resolution to a lengthy legal dispute stemming from JELD-WEN’s 2012 acquisition of CraftMaster Inc. Employees at the plant express a positive outlook under Woodgrain’s ownership. JELD-WEN anticipates significant financial impacts and a retraction in revenue as part of the divestiture process.
Towanda, Pennsylvania – JELD-WEN Holding, Inc. has successfully completed the sale of its Towanda manufacturing facility to Woodgrain Inc. The transaction, finalized on January 17, 2025, was valued at $115 million, subject to standard closing adjustments. This move was compelled by a court order after a prolonged antitrust dispute initiated by competitor Steves & Sons.
The divestiture comes in response to findings that JELD-WEN violated federal antitrust laws during its 2012 acquisition of CraftMaster Inc. (CMI), leading to a ruling by the U.S. District Court that mandated the sale of the Towanda plant to a third party. Steves & Sons filed a lawsuit against JELD-WEN in 2016, alleging that their merger negatively impacted market competition.
The court’s final ruling, which took place in December 2018, required JELD-WEN to offload the Towanda facility, which led to Woodgrain’s acquisition, as they had previously operated the site from 2002 to 2012. Woodgrain views this acquisition as a strategic fit with its business objectives and expansion plans. The company intends to support the existing customer base while maintaining all current employees at the Towanda location.
As a result of the sale, JELD-WEN is expected to experience significant financial impacts in the coming year. The company projects an annual revenue decrease between $150 million to $200 million and an EBITDA reduction of $25 million to $50 million following the closure of the divestiture. Additionally, JELD-WEN anticipates incurring a non-cash pre-tax impairment charge estimated between $25 million and $35 million as a consequence of the sale.
Employee sentiments at the Towanda facility reflect a generally positive outlook regarding Woodgrain as the new owner. Many believe that Woodgrain will offer improved treatment and greater investment in the plant, in contrast to their prior experiences under JELD-WEN’s ownership.
Woodgrain Entities have also sought to intervene in the antitrust case, emphasizing the need for proper representation in the divestiture process, which they argue has not been adequately addressed by JELD-WEN. Currently, the court is reviewing a report and recommendations concerning the divestiture, under the guidance of a Special Master.
This sale marks a significant chapter in the ongoing saga of JELD-WEN’s legal battles, highlighting the complex environment businesses navigate regarding compliance with antitrust regulations. The sale of the Towanda facility provides a crucial resolution to a lengthy legal dispute while opening the door for Woodgrain to re-establish its presence in the local market.
The Towanda plant’s transition to Woodgrain is more than just a shift in ownership; it signifies a potential revitalization of operations and employee relations, which could positively impact overall business health in the region. Both companies now face the challenge of ensuring a smooth transition that respects the interests of workers and customers alike while remaining compliant with legal frameworks.
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