Centerbridge Partners LP has agreed to acquire American Bath Group LLC from Lone Star. No financial terms were disclosed. This transaction is expected to close in the fourth quarter of 2020. ABG is a maker of showers, bathtubs, and related accessories.
ARLINGTON, Texas, Oct. 8, 2020 /PRNewswire/ — American Bath Group, LLC (“ABG” or the “Company”), a leading manufacturer of showers, bathtubs, and related accessories, today announced a definitive agreement for funds advised by Centerbridge Partners, L.P. (“Centerbridge”), a leading private investment firm, to acquire the Company from affiliates of Lone Star Funds (“Lone Star”). The ABG management team will continue to own a significant position in the business.
American Bath Group provides a comprehensive offering of bathware products, including showers, integrated tub / showers, bathtubs, shower bases, jetted whirlpools, and spas through a broad portfolio of well-recognized brands. The Company sells its products through the wholesale and retail channels to a diverse base of builders, plumbers, general contractors, and individual end-users. ABG’s predecessor entity was founded in 1993 by brothers Rick and Scott Stonecipher, who will continue to serve as CEO and COO, respectively.
“American Bath Group is a market leader in an attractive and fast growing building products segment with a portfolio of brands trusted by professional installers and consumers. The Company has a strong track record of value creation through organic growth and strategic acquisitions, and we look forward to supporting the next phase of the Company’s growth,” said Steve Silver, Global Co-Head of Private Equity and Senior Managing Director at Centerbridge.
“Over the last thirty years, American Bath Group has grown to become the industry leader through an unrelenting focus on commercial excellence and continuous operational improvement. The Company is well positioned to continue this trajectory, and we are excited to partner with its exceptional team led by Rick and Scott Stonecipher,” added Conor Tochilin, Managing Director at Centerbridge.
“We’ve enjoyed our partnership with Lone Star and are thankful for their support over the last four years. The Centerbridge investment will help us continue to innovate, enhance our offerings, and expand our channel and customer partnerships,” said Rick Stonecipher, CEO of American Bath Group. “This is an exciting milestone in our history, and we are looking forward to working with our new partners to accelerate our mission to build a better bathware industry.”
This transaction is expected to close in the fourth quarter of 2020 and is subject to customary closing conditions and approvals.
RBC Capital Markets LLC served as financial advisor to American Bath Group and Lone Star on the transaction. Gibson, Dunn & Crutcher LLP served as legal counsel to American Bath Group and Lone Star. Barclays, Nomura Securities International, Inc., and Truist Securities, Inc. served as financial advisors to Centerbridge. Credit Suisse, RBC Capital Markets LLC, Bank of America, BMO Capital Markets Corp., Truist Securities, Inc., Barclays, and UBS Investment Bank are providing financing for the deal. Kirkland & Ellis LLP served as legal counsel to Centerbridge Partners.
About American Bath Group
American Bath Group is a leading North American bathware manufacturer with a comprehensive product offering including showers, integrated tub / showers, bathtubs, shower bases, jetted whirlpools, and spas through a broad portfolio of well-recognized brands. Learn more at www.americanbathgroup.com.
About Centerbridge Partners
Centerbridge Partners, L.P. is a private investment management firm employing a flexible approach across investment disciplines—from private equity to credit and related strategies, and real estate—in an effort to find the most attractive opportunities for our investors and business partners. The Firm was founded in 2005 and as of August 31, 2020 has approximately $26 billion in capital under management with offices in New York and London. Centerbridge is dedicated to partnering with world-class management teams across targeted industry sectors and geographies to help companies achieve their operating and financial objectives. For more information, please visit www.centerbridge.com.
About Lone Star Funds
Lone Star is a leading private equity firm advising funds (the “Funds”) that invest globally in real estate, equity, credit and other financial assets. Since the establishment of its first Fund in 1995, Lone Star has organized 21 private equity Funds with aggregate capital commitments totaling more than $85 billion. For more information, please visit www.lonestarfunds.com.