Jeld-Wen criticizes ruling
Federal Judge Robert E. Payne ordered Jeld-Wen, Inc. to divest itself of its Towanda, Pa, interior molded doorskin-manufacturing plant, to preserve and maintain the plant – in all aspects -- through divestiture to another company, and to enter a series of contracts designed to ensure that the divestiture results in a viable supplier of molded doorskins going forward.
The Judge’s order finalizes the opinion he released Oct. 5, which detailed actions to follow a previous jury decision in his Richmond, Va., court agreeing with Steves’ assertion that Jeld-Wen violated federal antitrust law – specifically, the Clayton Act – by substantially reducing competition in the market for interior molded doorskins in the United States through its acquisition of its former competitor, CMI, which owned the plant in Towanda.
Doorskins are a critical component used in manufacturing interior molded doors, which is the primary business of Steves & Sons, a company founded in 1866 and based in San Antonio with other facilities in Richmond, Va.; and Lebanon, Tenn. The company employs some 1,100 people.
Jeld-Wen criticized the ruling as an unnecessary, after-the-fact judicial interference in the flow of business. The company said: "The DOJ conducted two separate reviews of Jeld-Wen’s acquisition of CMI – one at the time of the 2012 acquisition and another at Steves’ request in 2015. Jeld-Wen followed all requirements to lawfully acquire CMI, and the acquisition cleared DOJ review on both occasions. Steves did not raise any concerns with the DOJ at the time of the acquisition in 2012, despite its own failed attempt to acquire ownership of CMI."
“Jeld-Wen firmly maintains that it has not violated any antitrust laws and that it has not damaged Steves,” stated Gary S. Michel, President and Chief Executive Officer. “Rather than resolving a simple contractual dispute between two parties, the District Court has now delivered an erroneous ruling that improperly interferes with our company and the broader commercial marketplace.”
A lengthy description of the Jeld-Wen position can be found here.
“While today’s ruling is disappointing, it will not alter our focus as we will continue to provide industry-leading products and services to our customers during the appeal process. Additionally, we will continue to support the growth and development of our dedicated employees at the Towanda facility,” Michel said.
Meanwhile, Steve’s hailed the ruling.
The “judgment is a culmination of years of investment and effort, all aimed at the preservation of competition and choice and the future of our 152-year-old company,” said Edward G. Steves, CEO of Steves & Sons. “We will continue serving our customers with the quality products and attention to detail that, for six generations, have marked the success of this family-owned company since our founding in 1866.”
The Judge’s order finalizes the opinion he released Oct. 5, which detailed actions to follow a previous jury decision in his Richmond, Va., court agreeing with Steves’ assertion that Jeld-Wen violated federal antitrust law – specifically, the Clayton Act – by substantially reducing competition in the market for interior molded doorskins in the United States through its acquisition of its former competitor, CMI, which owned the plant in Towanda.
Doorskins are a critical component used in manufacturing interior molded doors, which is the primary business of Steves & Sons, a company founded in 1866 and based in San Antonio with other facilities in Richmond, Va.; and Lebanon, Tenn. The company employs some 1,100 people.
Jeld-Wen criticized the ruling as an unnecessary, after-the-fact judicial interference in the flow of business. The company said: "The DOJ conducted two separate reviews of Jeld-Wen’s acquisition of CMI – one at the time of the 2012 acquisition and another at Steves’ request in 2015. Jeld-Wen followed all requirements to lawfully acquire CMI, and the acquisition cleared DOJ review on both occasions. Steves did not raise any concerns with the DOJ at the time of the acquisition in 2012, despite its own failed attempt to acquire ownership of CMI."
“Jeld-Wen firmly maintains that it has not violated any antitrust laws and that it has not damaged Steves,” stated Gary S. Michel, President and Chief Executive Officer. “Rather than resolving a simple contractual dispute between two parties, the District Court has now delivered an erroneous ruling that improperly interferes with our company and the broader commercial marketplace.”
A lengthy description of the Jeld-Wen position can be found here.
“While today’s ruling is disappointing, it will not alter our focus as we will continue to provide industry-leading products and services to our customers during the appeal process. Additionally, we will continue to support the growth and development of our dedicated employees at the Towanda facility,” Michel said.
Meanwhile, Steve’s hailed the ruling.
The “judgment is a culmination of years of investment and effort, all aimed at the preservation of competition and choice and the future of our 152-year-old company,” said Edward G. Steves, CEO of Steves & Sons. “We will continue serving our customers with the quality products and attention to detail that, for six generations, have marked the success of this family-owned company since our founding in 1866.”