JW Aluminum Co., the Mount Holly maker of rolled aluminum sheet and foil, is getting a new owner.
Walter Industries Inc. said Thursday that it had signed a definitive agreement to sell JW Aluminum to Wellspring Capital Management LLC, a New York private equity firm, for $125 million. The deal is expected to close in the fourth quarter, subject to customary conditions including regulatory approvals.
“While JW Aluminum has been a strong performer for Walter Industries, it does not fit our long-term strategy of reducing the complexity of the corporation,” Don DeFosset, Walter’s chairman and chief executive, said in the announcement. He called the sale, along with the pending sale of Walter’s AIMCOR subsidiary, a significant step toward focusing the Tampa company on homebuilding, financing and its U.S. Pipe business.
“JW Aluminum has proven its operational excellence, and its reputation for quality and service is well-known in the industry,” said William F. Dawson Jr., a Wellspring partner. “We look forward to working with JW Aluminum’s management team as we build an even stronger company in the future.”
Founded in 1980, JW Aluminum makes specialty flat-rolled products, including fin stock used in heating and air conditioning equipment, according to Walter’s annual report. Its foil and sheet also go into newspaper printing plates, foam insulation facers, siding, gutters, roofing and window components.
The Mount Holly plant sits on 44 acres and has 425,000 square feet of space, Walter reported. JW Aluminum had net sales of $202.1 million last year and sold about 209 million pounds of aluminum products, 52% of it foil and 48% sheet.
Wellspring manages more than $1 billion in capital, and its holdings include foodservice distributor Vistar Corp., according to the announcement. Walter Industries, whose businesses include homebuilding, home financing and ductile iron pipe, has revenue of about $1.3 billion excluding JW Aluminum and AIMCOR and employs about 5,400 people, the company said.
