Platinum buys Australian building products supplier

The private equity firm, which invests from global funds, has secured several manufacturing-related deals in Asia Pacific. Most recently, it bought Hop Lun, a Hong Kong-headquartered producer of fashion lingerie and swimwear that serves a global client base. This followed exits from two industrial manufacturing businesses in Singapore, Compart Systems and PCI.

In Australia specifically, Platinum acquired Sensis, best known as the operator of Australia’s White Pages and Yellow Pages directories, in 2014. It sold to a US trade buyer in 2021.

Jeld-Wen manufactures interior and exterior building products, including windows, interior and exterior doors, and wall systems. It operates under the Jeld-Wen brand globally and under the Corinthian, Stegbar, and Breezway brands in Australia.

The company claims to be Australia’s leading producer of windows and doors, employing about 5,000 people and operating 41 manufacturing locations across Australia, Malaysia, and Indonesia.

The decision to divest followed a strategic review of the local operation. Jeld-Wen was relatively bullish on Australia in its 2022 annual report, noting that a backlog in new residential construction – arising from credit restrictions for homebuyers, immigration restrictions tied to COVID-19, and a weakening economy – should drive strong demand through the first half of 2023.

Jeld-Wen generated USD 5.13bn in revenue in 2022, of which 11% came from the Australasia market. North America and Europe accounted for 64% and 25%, respectively. The company’s net income for 2022 was USD 45.7m, down from USD 168.8m a year earlier. It didn’t offer a geographic breakdown.

“Platinum has decades of experience with corporate carve-outs, helping establish standalone companies that can maximise their potential,” said Louis Samson, Platinum’s co-president, and Adam Cooper, a managing director, in a joint statement.

“With our experience in Australia, our knowledge of the building products space, and our carve-out expertise and operational capabilities, we look forward to helping the business navigate a dynamic housing market. This investment is right in our wheelhouse."

Platinum, which has USD 47bn in assets under management, is currently deploying two funds: Platinum Equity Capital Partners V, a USD 10bn global buyout fund; and Platinum Equity Small Cap Fund, a USD 1.5bn vehicle mandated to pursue control opportunities in the lower middle market.

Macquarie Capital and Herbert Smith Freehills advised Jeld-Wen on the transaction, while Gresham Advisory Partners and Allens worked with Platinum. The transaction is expected to close in the third quarter of 2023.

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• Topics
• Australasia
• Industrials
• Buyouts
• Real estate
• Platinum Equity
• manufacturing
• Australia