Danish giant acquires Loewen

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This article was published 02/07/2010 (5807 days ago), so information in it may no longer be current.

Loewen, the company that is an economic pillar of southeastern Manitoba, has been sold to a Danish powerhouse.

The Steinbach-based manufacturer of doors and windows for the luxury home market has been purchased by VKR Holding of Denmark for an undisclosed sum.

Clyde Loewen, head of the family’s shareholder group, which spans several generations, said it was decided after much debate that the needs of the company and those of its shareholders would be best served if another owner was at the helm.

“The Loewen shareholders believe that VKR will bring the resources, capabilities and character to ensure the future success of Loewen in the marketplace while maintaining respect for all of its stakeholders as well as for the culture of the staff and the community,” he said.

The bulk of Loewen’s products are destined to million-dollar-plus homes in the United States but they also do steady business in Canada.

The company had fallen on hard times in the last couple of years as the global recession significantly impacted its sales south of the border and it was forced to institute several rounds of layoffs to bring its costs in line with its falling revenue.

According to various sources, Loewen’s current workforce of about 700 is less than half of the 1,600 people it had on its payroll just a couple of years ago. Loewen also instituted shorter work weeks to forestall further job losses that might otherwise have occurred.

VKR is no stranger to the windows and doors business. Under its corporate umbrella are firms that produce roof windows, vertical windows and thermal solar energy products. Collectively, the companies have more than 1,400 employees in 40 countries.

Leif Jensen, CEO of VKR, said it already owns a number of window companies in Europe and believes significant synergies can be achieved through the acquisition of Loewen. He said it pursued the 105-year Steinbach institution because the population growth in Canada and the U.S. is larger than in Europe.

Regardless of the window and door industry’s downturn over the last three years on this side of the Atlantic, he said he’s optimistic about Loewen’s prospects.

“The markets are slowly stabilizing and we see great potential in Loewen, not least because the company holds a strong niche position in the high-end segment of the market and engages in extensive product development,” Jensen said.

Glenn Friesen, CEO of the Steinbach Credit Union, said he was surprised when he heard the news. He described the company as a “part of Steinbach’s heritage.”

“I didn’t know they were for sale. I hadn’t heard any rumblings. They’ve been a very good community builder. Hopefully (the sale) is the best for them,” he said.

Loewen’s products are marketed under the Loewen, Loewen Bella Vista Collection, Loewen LiftSlide and Loewen Cyprium brands.

geoff.kirbyson@freepress.mb.ca