Springs Window Fashions, the world's second-largest provider of custom window-covering products, is exploring a sale that could value it at more than $1.5 billion, including debt, according to people familiar with the matter.
The sale process for Spring Window Fashions comes as the U.S. housing industry continues its slow rebound, boosting demand for new blind and shade installations.
Golden Gate Capital, the private equity firm that controls Springs Window Fashions, has hired Barclays Plc (BARC.L) to help run an auction for the company, the people said on Monday, cautioning that no deal was certain.
The sources asked not to be identified because the sale process is confidential. Springs Window Fashions, Barclays and Golden Gate Capital declined to comment.
Based in Middleton, Wisconsin, Springs Window Fashions has 13 facilities worldwide and sells its products in more than 5,000 retail stores.
Springs Window Fashions, which makes the Graber and Bali window products, was founded in 1939 by John N. Graber. The company sold to Consolidated Foods Corp of Chicago in 1967, under the name Graber Industries Inc, a year after Graber's death. In 1979, textile manufacturer Springs Industries Inc purchased the company.
Springs Industries spun it off to the family of Crandall C. Bowles, who worked as chairman and chief executive officer of Springs Industries, along with the private equity firm Heartland Industrial Partners. Golden Gate Capital acquired Springs Window Fashions in 2013 for an undisclosed amount.
The world's largest window coverings business is Rotterdam, Netherlands-based Hunter Douglas NV (HUDN.AS), which in July paid approximately $270 million to buy the Levolor and Kirsch coverings brands from household product company Newell Brands (NWL.N).
(Reporting by Greg Roumeliotis in New York; additional reporting by Lauren Hirsch in New York; Editing by Meredith Mazzilli)