This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

The Deal: AEA Investors Sheds CPG International

Stocks in this article: UBS BCS

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.

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,678.70 +6.10 0.03%
S&P 500 2,057.09 +5.27 0.26%
NASDAQ 4,771.7630 +13.8840 0.29%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs