Charlotte, NC—Jeld-Wen Windows and Doors will drop further appeals of a 2019 court order to sell its Towanda, PA moulding and door skin manufacturing operation, acquired 12 years ago from CraftMaster Manufacturing, Inc.
The formal announcement was included in an upbeat second quarter earnings report, which saw a 25 percent gain in net revenue to $1,245.8 million, and net income of $60.7 million.
Divestiture of Towanda, PA Operations
Jeld-Wen said it has decided not to appeal the decision by the U.S. Court of Appeals for the Fourth Circuit, which in February 2021 upheld the district court’s divestiture ruling in the litigation between the company and Steves & Sons, Inc. An appeal would have meant a long-shot request to the Supreme Court to consider the case. “Although the company will not be seeking Supreme Court review of the Fourth Circuit’s decision, the company retains the legal right to challenge the divestiture process and the final divestiture order,” Jeld-Wen said in a statement.
The announcement mirrors the actions Jeld-Wen has been taking in court during recent weeks. The divestiture is said to be the largest ever resulting from a civil court action and will publicly commence the process for the divestiture of its Towanda, PA operations, described by the company as a wood fiber composite building products operation that includes the MiraTEC exterior trim and Extira product lines.
Jeld-Wen is working with the court-appointed special master to complete a sale and said it intends to maximize the value of the divestiture assets, though it says the litigation lacks merit and denies any wrongdoing. The special master has retained an investment bank to evaluate divestiture options for the Towanda facility and oversee an orderly sale process.
“After a thorough review of our options, we have concluded that it is in the best interest of our customers, our associates and our shareholders to begin the divestiture process and eliminate the ongoing uncertainty around this matter,” says Gary Michel, Jeld-Wen CEO. “A leader in wood fiber composite technology, the business at Towanda has talented associates, a high performance product portfolio and attractive financial characteristics. The Towanda facility is a unique, well-performing asset, and we believe the business will attract significant interest from buyers due to the current housing and renovation booths and strong M&A market conditions. Jeld-Wen is well prepared to support the continued growth of our customers post divestiture.”
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