NEWTOWN SQUARE, PA. (July 25, 4:05 p.m. ET) — Private equity firm Graham Partners Inc. has purchased PVC window extruder Chelsea Building Products from Belgian chemical company Tessenderlo Group.
Terms were not disclosed for the deal, which was announced July 25.
Chelsea is one of the larger U.S. extruders of profiles for windows and doors, through its single plant in Oakmont, Pa., north of Pittsburgh.
Chelsea had estimated 2010 sales of $65 million, according the most recent Plastics News ranking data. However, Tessenderlo's news release announcing the sale said the sales are about $50 million.
The Oakmont plant employs 180.
Graham Partners, based in Newtown Square, Pa., a suburb of Philadelphia, buys mid-sized manufacturing companies with sales between $30 million and $500 million. Graham Partners is affiliated with Graham Group of York, Pa.
Graham Partners has made several acquisitions in plastic building products in recent years, but this is its first in vinyl windows. Another Graham Group operation, Graham Architectural Products, makes aluminum windows for commercial buildings.
Recently, plastic machinery manufacturer Graham Engineering Corp. in York has starting making pultruded glass-fiber reinforced windows for Graham Architectural Products.
Chelsea adds a portfolio of residential vinyl windows and doors.
Tessenderlo Group is focusing on the areas of chemicals for food and agriculture, bio-residuals and water management through its plastic pipe business.
“Chelsea Building Products has recovered strongly after the economic crisis, and offers good growth prospects. However, in this business, we remain a small player and we are not able to reach a market leading position on our own,” Albert Vasseur, Tessenderlo Group's director of plastics converting, in a statement.
Rob Newbold, managing principal at Graham Partners, said Chelsea's energy-efficient vinyl windows and innovative products are a good fit with the firm's current portfolio.
“They have an experienced management team, a committed and talented employee base and long-term successful partnerships with their customers,” Newbold said in a new release.
Tessenderlo Group bought Chelsea Building Products in late 1996.