Aug 20 2013
CPG International Inc. (CPG) announced today that it has entered into a definitive agreement to be acquired by funds managed by Ares Management LLC and Ontario Teachers' Pension Plan (Teachers) from funds advised by AEA Investors LP.
Senior management will retain a minority stake. Terms of the transaction were not disclosed, and the close of the transaction is subject to regulatory approval and other customary closing conditions.
CPG International is a manufacturer of highly engineered low-maintenance building materials designed to replace wood, metal and other traditional materials in a variety of building applications. CPG sells its products into the residential, commercial, and industrial markets under the leading brand names of AZEK, TimberTech, VYCOM, and Scranton Products.
Funds advised by AEA Investors LP acquired CPG in May 2005, when the business had approximately $220 million in revenue and its residential building products line consisted only of AZEK Trim. Over the past 8 years, with the strategic and financial support of AEA, CPG has executed 5 acquisitions and invested approximately $55 million for capacity expansion.
Despite the worst housing downturn and economic recession in recent memory, Management and AEA helped CPG grow to over $500 million in revenue and become the leader in low-maintenance exterior building products, including trim, moulding, deck, rail, porch plank, and pavers.
"We are excited to partner with Ares and Teachers as they share our vision for continued growth at CPG. We have enjoyed a strong relationship with AEA in building the business and thank them for all of their support," said Eric Jungbluth, Chief Executive Officer of CPG International.
Sullivan & Cromwell LLP acted as legal advisor and JP Morgan and UBS acted as co-financial advisors to Ares and Teachers. Fried, Frank, Harris, Shriver & Jacobson LLP acted as legal advisor and Barclays and Deutsche Bank Securities Inc. acted as co-financial advisors to CPG International.
About CPG International Inc.
Headquartered in Scranton, Pennsylvania, CPG International Inc. is a manufacturer of market-leading brands of highly engineered, premium, low-maintenance, building products for residential commercial and industrial markets designed to replace wood, metal and other traditional materials in a variety of construction applications. The Company's products are marketed under several brands including AZEK® Trim and Moulding, AZEK® Deck, AZEK® Rail, TimberTech®, TuffTec™, Duralife Lockers®, Seaboard™, Hiny Hider® and Celtec®, as well as many other brands.