JELD-WEN Holding, Inc. announced it has entered into an asset purchase agreement for the sale of its Towanda, Pennsylvania business and related assets to Woodgrain Inc. for approximately $115 million. This divestiture is a result of a court-ordered process.
The company estimates that the sale of Towanda will lead to an annual reduction of approximately $150 million to $200 million in revenue and $25 million to $50 million in EBITDA during the twelve months following the closing. A non-cash pre-tax impairment charge of approximately $25 million to $35 million is also expected.
JELD-WEN anticipates the divestiture to be approximately neutral to its net debt leverage. The transaction is currently expected to close as early as December 31, 2024, marking an important step in resolving the long-standing legal proceeding.
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