JELD-WEN makes CEO change while announcing acquisitions
JELD-WEN revealed today that Mark Beck is out as president and CEO after reaching a “mutual agreement” with the company. The move was effective Feb. 27.
In the meantime, JELD-WEN Chairman and former CEO Kirk Hachigian has assumed top leadership duties at the Charlotte, N.C.-based window and door manufacturer on an interim basis while the board of directors conducts a CEO search.
“Our strong and experienced executive management team will work closely with me to make this leadership transition seamless for our customers, shareholders and employees,” Hachigian said in a prepared statement.
Earlier this month JELD-WEN reported fourth quarter 2017 net revenues increased just 0.3% to $976 million, driven by a 4% contribution from recent acquisitions and 2% due to the favorable impact of foreign exchange while North American net revenues decreased $18.9 million, or by 3.3%.
JELD-WEN also posted a net loss of $93.7 million for the quarter as its net income for the year decreased $366.4 million to $10.8 million.
The change in JELD-WEN’s leadership arrives as the company makes a series of acquisitions including acquiring all of the outstanding shares of American Building Supply (ABS), a Sacramento, Calif.-based manufacturer and distributor of door, millwork, and hardware products for both residential and commercial applications. Through its Doormerica division, ABS manufactures decorative, specialty, and architectural doors, including the Millennium Door series.
“The acquisition of ABS aligns perfectly with our strategy to expand our door capabilities with value-added services and customized full door systems. ABS, together with our recent acquisition of MMI Door, will expand our ability to offer these services to our customers with a broad geographic coverage area across the U.S.,” said John Linker, SVP of corporate development and investor relations.
The acquisition is expected to close in the first quarter of 2018. Terms of the deal were not disclosed. JELD-WEN said it expects ABS to add about $275 million in annual revenue to the company.
JELD-WEN also reported that it has completed its acquisition of private-held A&L Windows, an Australian manufacturer of residential aluminum windows and patio doors. A&L maintains a network of manufacturing facilities and showrooms across the eastern seaboard of Australia. Terms of the deal were not disclosed. A&L is projected to add approximately AU$130 million (US$101.2 million) in annual revenue.
“A&L’s excellent position in the first-time home buyer market expands the reach of our current product range and customer base. The addition of A&L’s brand name expands our portfolio of leading Australian brands and supports our strategy to build leadership positions in attractive markets,” Linker said.
Including the expected contribution of the A&L acquisition, but excluding the impact of the pending ABS acquisition, JELD-WEN expects full year 2018 net revenue growth of 10% to 13% compared to the previous outlook of 8% to 11%.
JELD-WEN operates 120 manufacturing facilities in 19 countries.