Building Products Maker CPG Hires Banks for $1.5 Bln Sale-Sources

Building products maker CPG International is being prepared for a sale by its private equity owner, a deal that could fetch between $1 billion and $1.5 billion, sources tell Reuters.

NEW YORK, May 22 (Reuters) – Building products maker CPG International is being prepared for a sale by its private equity owner, a deal that could fetch between $1 billion and $1.5 billion, according to three people familiar with the matter.

Buyout firm AEA Investors LP has hired Barclays and Deutsche Bank to find a buyer for CPG, which makes building supplies for residential and commercial markets such as outdoor decking and porch boards, the people said on Wednesday.

The company, which was acquired by AEA Investors in 2005 for an undisclosed sum, is expected to start conversations with potential buyers in the next few weeks that could include private equity firms as well as industry rivals, said one of the people.

They asked not to be identified because the sale process is not public. Representatives for AEA Investors did not immediately respond to requests for comment. Barclays and Deutsche Bank declined to comment.

The potential sale of CPG comes as investors are looking to capitalize on a rebound in the U.S. housing market, which was hit hard by the turmoil in the U.S. credit market in late 2007. Low interest rates and rising rents have pushed many consumers to buy homes, boosting the outlook for the housing and building products markets.
Headquartered in Scranton, Pennsylvania, CPG International makes synthetic construction and building products to replace wood, metal and other materials, according to its website.

Its products include deck, trim, rail molding; bathroom partitions, lockers and industrial plastic sheet products. They are sold under several brands such as AZEK Building Products, Santana Products and Comtec Industries.

Founded in 1968, AEA focuses on investing in middle-market companies in the industrial products, specialty chemicals, consumer products and services industries.