Funds advised by Ares Management and the Ontario Teachers’ Pension Plan are buying CPG International Inc.
CPG, headquartered in Scranton, Pa., manufactures low-maintenance building materials that are designed to replace wood, metal and other materials. The products are sold under the brand names Azek, TimberTech, Vycom and Scranton Products. Terms of the transaction were not disclosed.
Ares is a Los Angeles investment firm with about $66 million in committed capital under management. In May, the firm’s real estate arm, Ares Commercial Real Estate Corp. (NYSE: ACRE) announced a deal to buy EF&A Funding LLC, which focuses on multifamily real estate lending.
JP Morgan Securities LLC and UBS Investment Bank acted as co-financial advisers to Ares and the pension plan, while Sullivan & Cromwell LLP acted as legal counsel. Barclays and Deutsche Bank Securities Inc. were CPG’s financial advisers, and Fried Frank Harris Shriver & Jacobson LLP provided legal advice.
The housing and home improvement sectors have hosted several deals lately. In August, Markel Corp. (NYSE: MKL) bought home builder Eagle Construction of VA LLC, and Nova Capital Management Ltd. agreed to buy home improvement and hardware brands Amerock, Ashland, Bulldog, Drapery Hardware and Shur-Line.
Private equity firm Kelso & Co. is also attempting to sell Custom Building Products, a deal that if successful, could indicate the resurgence of the real estate market, experts say.