NEW YORK ( The Deal) -- Building products manufacturer CPG International is being flipped to new private equity owners Ares Management and Ontario Teachers' Pension Plan, a sign of renewed investor interest in the recovering housing sector.
Terms of the deal were not disclosed, but according to reports CPG was valued at about $1.5 billion including about $500 million in assumed debt.
Scranton, Pa.-based CPG is a manufacturer of highly-engineered and low maintenance materials in residential, commercial and industrial construction, including trim, moulding, deck, rail, porch plank, and pavers.
The company since 2005 has been owned by AEA Investors LP, which invested about $55 million in CPG for capacity expansion and helped shepherd a series of acquisitions by the company that helped grow annual sales from $220 million to more than $500 million.CPG has a long history of private equity ownership, with AEA buying the company from Clearview Capital and Whitney & Co. for about $360 million. The company had filed for an initial public offering in 2011 but never went through with a securities sale. Company CEO Eric Jungbluth in a statement said his firm has known its new owners for some time, saying that CPG is "excited to partner with them as they share our vision for continued growth at CPG." Bennett Rosenthal, co-head of private equity at Los Angeles-based Ares, said "CPG is recognized as an industry leader and innovator, and we are looking forward to participating in the company's continued success." A Sullivan & Cromwell team including partners Alison Ressler, Rita O'Neill, S. Neal McKnight, Matthew Friestedt, Andrew Mason, David Spitzer and Juan Rodriguez provided legal counsel to Ares and Ontario Teachers, with JP Morgan Securities and UBS Investment Bank (UBS) acting as financial advisers. CPG was advised by Barclays (BCS), Deutsche Bank Securities and attorneys with Fried, Frank, Harris, Shriver & Jacobson. Written by Lou Whiteman.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV