NorthEdge sells DW3 to Masonite in £70m deal

NorthEdge Capital has completed the sale of DW3 Products Holding (DW3) to Masonite International Corporation, a global designer and manufacturer of interior and exterior doors.

The transaction is NorthEdge’s eighth exit and represents a 3.5x return and an IRR of 59% with a holding period of 40 months.

Jon Pickering, partner and head of NorthWest at NorthEdge Capital, said: “DW3 has been a pioneer in developing composite doors and window products in recent years as well as leading the industry with its online presence and cloud based ordering platforms. This deal is testament to the talent within the group, and the success the company has been able to generate through a targeted, dynamic buy and build approach which has seen the group make acquisitions and invest heavily in capex, operational platforms, IT infrastructure, and technology.

“This exit represents a strong return on investment for NorthEdge and we are pleased that our support has culminated in investment from a global player in this market.”

Led by CEO Gareth Mobley, DW3 (Solidor, Residor, Nicedor, and Residence Collection) employs approximately 300 people in Stoke-on-Trent and Gloucester. DW3’s net sales for the 12 months ended December 2017 were approximately £45 million.

Gareth Mobley, CEO at DW3, said: “It has been a pleasure to work with the team at NorthEdge. The team has consistently invested in people, operations, technology, and innovation and we have been able to offer our customers access to the best products and the best service as a result. We are very much looking forward to the next chapter as we join one of the world’s leading building products businesses. Masonite is a global leader and this is a proud moment for our team.”