AEA Investors LP and British Columbia Investment Management Corporation (BCI) have entered into a definitive agreement to acquire Springs Window Fashions, LLC from Golden Gate Capital. Financial terms were not disclosed. Springs’ management team, led by CEO Eric Jungbluth, will continue to lead the company after the closing of the transaction.
Established in 1939, Middleton, Wisconsin based Springs manufactures and sells custom and stock window coverings and drapery hardware to retail and commercial customers, as well as independent designers, franchisors and decorators.
Golden Gate Capital acquired Springs Window Fashions in 2013 from Heartland Industrial Partners and the Close Family. Springs’ management continued with a minority ownership position.
photo credit: Springs Window Fashions
News Release
Golden Gate Capital to sell Springs Window Fashions to AEA Investors and British Columbia Investment Management Corporation
April 23, 2018
(MIDDLETON, Wis., NEW YORK, NY & VICTORIA, BRITISH COLUMBIA, CANADA) – April 23, 2018 – Springs Window Fashions (“Springs” or “the Company”), the second largest provider of custom window covering products in the world and a portfolio company of Golden Gate Capital, today announced that affiliates of AEA Investors LP (“AEA Investors”) and British Columbia Investment Management Corporation (“BCI”) have entered into a definitive agreement to acquire Springs. Springs’ management team, led by CEO Eric Jungbluth, will continue to lead the Company after the closing of the transaction.
Headquartered in Middleton, Wisconsin, Springs manufactures and sells custom and stock window coverings and drapery hardware to retail and commercial customers, as well as independent designers, franchisors and decorators. Established in 1939, Springs has since grown through a combination of strategic acquisitions and organic investment.
Golden Gate Capital partnered with Springs in 2013 to expand in new and existing markets, accelerate investments in sales and marketing resources, and extend Springs’ portfolio of products by acquiring and successfully integrating five independent companies.
Eric Jungbluth, CEO of Springs, said, “We are excited to be working with AEA Investors and BCI after a successful partnership with Golden Gate. Springs has enjoyed many years of growth and expansion into new product areas under Golden Gate’s ownership. We look forward to partnering with AEA Investors and BCI and further building our market presence.”
Brian Hoesterey, President of AEA Investors, said, “Springs represents an exciting opportunity to invest in a highly attractive segment of the building products industry. Its market leadership, well-known brands, and strong relationships with key customers and suppliers makes us excited to partner with Eric and his team. We look forward to supporting them as they continue to grow their business both organically and through acquisitions.”
“We look forward to working with AEA and Springs’ management team to build on the Company’s successful track record as a leader in window coverings,” said Jim Pittman, Senior Vice President, Private Equity at BCI. “This investment allows our clients to invest in a high quality company with strong growth potential.”
Rajeev Amara, Managing Director at Golden Gate Capital, said, “We have enjoyed a strong and collaborative partnership with the Springs team over the past five years. During that time, the Company has significantly expanded its offerings into highly complementary areas and essentially doubled the size of the business. We wish Eric and the management team well in their next chapter and we’re confident the Company has a bright future ahead.”
The acquisition is subject to customary regulatory approvals and is expected to close in June 2018.
Barclays acted as financial advisor and Nob Hill Law Group, P.C. served as legal advisor to Golden Gate Capital and Springs. Fried, Frank, Harris, Shriver & Jacobson LLP served as legal advisor to AEA Investors and BCI. Barclays, Deutsche Bank and Nomura committed bank financing in support of the transaction.
About Springs Window Fashions
Springs Window Fashions, LLC, the Best Experience Company, supplies leading retailers and distributors with a complete line of blinds, shades, specialty treatments and window hardware. Bali ®, Graber® SWFContract®, MechoSystems®, Horizons®, Mariak® and SunSetter® are brands of Springs Window Fashions. Based in Middleton, Wis., the company has facilities in fifteen locations in the United States and Mexico and employs approximately 8,000 associates. For more information, visit www.springswindowfashions.com
About AEA Investors
AEA Investors LP was founded in 1968 by the Rockefeller, Mellon, and Harriman family interests and S.G. Warburg & Co. as a private investment vehicle for a select group of industrial family offices with substantial assets. AEA’s active individual investors (the “Participants”) include an extraordinary network of more than 75 highly successful business executives, industrial families, and former government leaders. Today, AEA’s approximately 70 investment professionals operate globally with offices in New York, Connecticut, London, Munich, and Shanghai. The firm manages funds that have approximately $10 billion of invested and committed capital, including the leveraged buyouts of middle market companies and small businesses and mezzanine and senior debt investing. AEA Private Equity invests across four sectors: value added industrial products, specialty chemicals, consumer products / retail and services. For further information about AEA, please visit http://www.AEAInvestors.com.
About British Columbia Investment Management Corporation
With C$135.5 billion of managed net assets as at March 31, 2017, British Columbia Investment Management Corporation (BCI) is one of Canada’s largest institutional investors within the global capital markets. Based in Victoria, British Columbia, BCI is a long-term investor that invests in all major asset classes including private equity. BCI’s clients include public sector pension plans, public trusts, and insurance funds. https://www.bci.ca
About Golden Gate Capital
Golden Gate Capital is a San Francisco-based private equity investment firm with over $15 billion of capital under management. The principals of Golden Gate Capital have a long and successful history of investing across a wide range of industries and transaction types, including going-privates, corporate divestitures, and recapitalizations, as well as debt and public equity investments. Notable investments sponsored by Golden Gate Capital include Cole-Parmer, Tronair, ANGUS, and GAL Manufacturing. For more information, visit www.goldengatecap.com.