Chelsea Building Products Recapitalized by Graham Partners

January 13th, 2016 by Editor

Chelsea Building Products recently received a dividend recapitalization from its owner, Graham Partners, a private-investment firm headquartered in Newtown Square, Pa.

Chelsea, which designs and manufactures vinyl door and window systems and other building products, has experienced strong performance “driven by new product introductions, significant cost savings and strategic customer acquisitions,” according to a press release from Graham. Because of that, Graham executed a dividend recapitalization that returned about 120 precent of fund-invested capital in the company.

“As (Chelsea) continues to win new business and develop innovative products, it is well positioned to capitalize on the continued housing market recovery as well as the industry conversion to energy-efficient windows driven by stricter energy codes,” said a statement from Graham.

According to the website Investopedia, dividend recapitalization is “when a company incurs a new debt in order to pay a  special dividend to private investors or shareholders. This usually involves a company owned by a private investment firm, which can authorize a dividend recapitalization as an alternative to selling its equity stake in the company.”

Graham purchased Chelsea Building Products, which is headquartered in Oakmont, Pa.,  from Belgian chemical company Tessenderlo Group in July 2011.

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