CPG International, a building materials company, has entered into an agreement to be acquired by Ares Management and Ontario Teachers’ Pension Plan. Ares and Teachers’ will hold an equal equity interest in CPG with senior management retaining a minority stake. CPG is currently majority owned by AEA Investors which first invested in the company in May 2005.
CPG International is a manufacturer of 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 brand names of AZEK, TimberTech, VYCOM, and Scranton Products. The company is headquartered in Scranton, PA (www.cpgint.com).
“We are delighted to join Teachers’ and CPG’s senior management team as long-term investors in the company,” said Bennett Rosenthal, Co-Head of Private Equity at Ares Management. “CPG is recognized as an industry leader and innovator, and we are looking forward to participating in the company’s continued success.”
Ares Management has $66 billion in capital under management and invests in private equity, leveraged loans, high-yield bonds, distressed debt and private debt. The firm has approximately 700 employees and is headquartered in Los Angeles with offices in New York, London, Chicago, and Atlanta (www.aresmgmt.com).
“This transaction continues our longstanding strategy of investing alongside strong management teams in high-quality businesses,” said Jane Rowe, Senior Vice-President of Teachers’ Private Capital and Infrastructure. “We believe CPG is well-positioned for long-term growth as consumers continue to recognize the superior value proposition offered by low-maintenance building materials.”
Teachers’ Private Capital is one of the world’s largest private equity investors, having participated as a long-term investor in numerous management buyouts in Canada, the United States and Europe. It is the private investment department of the Ontario Teachers’ Pension Plan, the largest single-profession pension plan in Canada. Teachers’ Private Capital is based in Toronto with offices in New York and London (www.teachersprivatecapital.com).
AEA manages approximately $6 billion of invested and committed capital in funds dedicated to three purposes: buyouts of middle market companies operating in the industrial, specialty chemical, consumer products and consumer services sectors; buyouts of smaller middle market companies in these same sectors; and mezzanine and senior debt investments. AEA was founded in 1968 and is based in New York with offices in London, Munich, Hong Kong, and Shanghai (www.aeainvestors.com).
JP Morgan Securities and UBS Investment Bank acted as co-financial advisors to Ares and Teachers’. Barclays and Deutsche Bank Securities acted as co-financial advisors to CPG International.
© 2013 PEPD • Private Equity’s Leading News Magazine • 8-19-13