The Business

Hygrade Components (www.hygrademetal.com) is a Bethlehem, Pennsylvania-based provider of components used in the manufacture of residential and commercial windows and doors.  Hygrade’s products, which include stiffeners, screen frames, muntin bars, spacers, and other components, are used to enhance the appearance and strength of windows and doors and improve the thermal efficiency of insulating glass.  Over Hygrade’s 75-year history, the company developed a market leadership position within the North American insulated glass, window, and door markets.  Hygrade operates three strategically-located facilities in Pennsylvania, Tennessee, and Oregon.

 

The Industry

Hygrade participates in the growing $15+ billion U.S. residential window and door industry.  Continued demand for Hygrade’s products will be driven by (i) growth in new residential construction, (ii) increasing household renovation activity as a result of aging U.S. housing stock, (iii) the growing prevalence of vinyl windows in new residential construction, and (iv) proliferation of building code regulations specifying strength standards for windows and doors.

 

The Process

Prestwick Partners initiated this transaction and acted as the exclusive financial advisor to Hygrade.  Prestwick designed an M&A process, prepared marketing materials, evaluated acquisition proposals, and negotiated the transaction with Wincove Private Holdings, a Boston and New York-based private equity group. Prestwick’s process included both domestic and international strategic acquirers as well as private equity groups.