Prospect Partners and Montgomery
Shelton & Co. Invest in Regency Windows Corporation
Investment Paves Way for Geographic Expansion of Growing Regional
1, 2004: Together with management, Prospect Partners, LLC of Chicago,
Illinois and Montgomery, Shelton & Co. of Winnetka, Illinois
are proud to announce their investment in Regency Windows Corporation
of Twinsburg, Ohio.
Regency is a third-generation
business that has been serving northern Ohio since 1971. The company
specializes in selling brand-name vinyl windows, siding and kitchen
refacing to homeowners at discounted prices and in providing installation
services via its own highly-trained specialists.
"This is an attractive
investment from both a company perspective and a market perspective,"
says William V. Glastris, a principal at Prospect Partners. "Regency
is a long-standing, growing business that has placed a huge emphasis
on quality products and customer service. Based on its reputation,
strong customer base and portfolio of products, we see a solid opportunity
to work with Montgomery Shelton and Regency's management team in
expanding the Regency name into adjacent geographical markets."
In addition, Glastris says, the growing home-improvement industry
is favorable to extending Regency's geographic reach. "The
replacement market is appealing. As a matter of course, especially
with older housing stock, homeowners periodically need to put in
new windows and siding and update their kitchens. With a company
as focused on customer care as Regency is, that also means ample
opportunity for referral and repeat business."
Regency's CEO and president,
Mike Magden, known locally as "Mikey," the spirited personality
in Regency's commercials, will continue to run the company. His
sons, Aaron and Harley, also will remain actively involved in the
"This new partnership
will provide us with the institutional support we need to take the
Regency approach to other lucrative home-improvement markets. We
look forward to growing our business even more, here in northern
Ohio and elsewhere," Magden says.
Prospect Partners' investment
partner, Montgomery Shelton & Co., is a highly experienced,
operationally oriented buyer that has completed 10 acquisitions
since its 1984 founding. Partners Mead Montgomery and David Shelton
offer a broad base of investment knowledge plus key operating experience
in companies in a variety of industries. Montgomery Shelton will
remain actively involved in the growth and development of Regency
as it seeks to expand.
"Regency has developed
a business model with unusually efficient marketing at the front
end, and consistent, quality-driven installation at the back end,"
says David Shelton, a partner of Montgomery Shelton. "The back
end is especially important because while the home-improvement industry
is enormous and growing, the installation services segment is notoriously
inconsistent when it comes to quality and service. We believe that
the combination of Regency's business model, Mike Magden and his
management team and the experience and capital of Prospect and Montgomery
Shelton, has tremendous potential."
Together with Montgomery
Shelton and Regency, Prospect Parners will selectively pursue add-on
acquisitions of other home-improvement companies that specialize
in both windows and installations.