Golden Gate Capital and Kenner & Co. have completed their previously-announced recapitalization of Atrium Companies Inc., a maker of vinyl and aluminum windows and patio doors. Atrium had filed for Chapter 11 bankruptcy in January. The recap cuts its pre-bankruptcy debt by more than 60%, with existing owners Golden Gate and Kenner investing more than $170 million in equity capital. The firms originally announced plans to invest $125 million.
Golden Gate Capital and Kenner & Company announced today the closing of their recapitalization of Atrium Companies, Inc., one of the largest manufacturers of vinyl and aluminum windows and patio doors in North America.
Established in 1948, Atrium is a nationally-recognized provider of high quality windows and doors to all 50 states and Canada. The company operates a nationwide network of manufacturing facilities and sells a comprehensive line of products to the new construction and repair and remodel markets.
As a result of the restructuring, Atrium has reduced its pre-petition debt by almost 60%. Additionally, Golden Gate and Kenner have contributed in excess of $170 million of equity capital to fund the transaction. These actions significantly strengthen Atrium’s balance sheet and position the company for growth.
“Atrium has emerged from this process as a stronger company with far less debt,” said Gregory T. Faherty, President and Chief Executive Officer of Atrium. “With a healthy balance sheet and new financing, we are very excited about the opportunities that lie ahead. Golden Gate Capital and Kenner & Company are experienced building products investors and well-capitalized partners, and we look forward to working with them to help the company flourish.”
Rajeev Amara, Managing Director of Golden Gate Capital, commented, “We are very excited to partner with the existing management team to recapitalize Atrium. Atrium is a market leader with a national operating footprint and expansive distribution network that position it favorably to benefit from a recovery in the housing market. We are pleased the recapitalization was completed in 100 days without disruption to customers or suppliers, and are committed to supporting the company’s growth over the long term, both financially and strategically.”
Kevin O’Meara, Operating Partner of Golden Gate Capital and Chairman of Atrium, said “I have known Atrium for many years as a customer and competitor. Atrium has an impressive portfolio of brands and a reputation for high quality products and exceptional service. I look forward to working with the more than 4,000 Atrium employees to build upon this tremendous record and help the company accomplish its goals in the coming years.”
About Golden Gate Capital
Golden Gate is a San Francisco-based private equity investment firm with approximately $8 billion of assets under management. Golden Gate is dedicated to partnering with world class management teams and targets investments in situations where there is a demonstrable opportunity to significantly enhance a company’s value. The principals of Golden Gate have a long history of investing with management partners across a wide range of industries and transaction types, including leveraged buyouts and recapitalizations, corporate divestitures and spin-offs and build-ups.
About Kenner & Co
Kenner & Company, Inc. is a private investment firm specializing in acquisitions and equity investments in operating companies with revenues between $100 million and $1 billion. Founded in 1986, Kenner has completed acquisitions in excess of $4 billion. The principals of Kenner have both operating and financial management experience, and a successful history of buying and building businesses. Kenner has a historical focus on the building products industry, having invested in eight building products and related companies with aggregate revenue of $3 billion.