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Topics Mergers & Acquisitions, Sustainability, Construction, Pipe/Profile/Tubing
SCRANTON, PA. (Aug. 27, 8:30 p.m. ET) — CPG International Inc., the parent company of Azek Building Products Inc., will buy TimberTech Ltd., a major producer of wood-plastic composites, from Crane Group.
Azek is a Scranton-based maker of decking, railing and trim boards.
CPG International issued an Aug. 27 announcement that it has signed a definitive agreement to buy TimberTech. Terms were not disclosed. Officials of TimberTech told employees at its factory in Wilmington, Ohio, about the pending deal on Aug. 24.
The CPG news release says nothing about the Wilmington plant, and officials were not immediately available for further comment. TimberTech CEO Stu Kemper did not return a call seeking comment.
The Wilmington News Journal quoted TimberTech’s chief operating officer, Tom Gramlich, as saying it’s “business as usual” at the factory, which employs 220.
TimberTech is one of the pioneers of WPC decking, which combine wood-flour and plastic to make a natural-looking, long-lasting deck. Columbus, Ohio-based Crane Group shipped its first TimberTech decking in 1997. TimberTech also makes railing to go with the decking systems.
Eric Jungbluth, the CEO of CPG International, said the acquisition will help both companies.
“The ultimate goal is for our Azek business and TimberTech to join forces,” Jungbluth said in the news release. “We believe this powerful combination will not only create the largest manufacturer in the trim, decking and railing market, but will also create a premier company in the industry as both entities manufacture highly engineered, outdoor living-solution products that offer exceptional aesthetics, performance and longevity.”
For Crane Plastics, selling TimberTech marks another exit from extruded plastic building products. Last year Crane sold its vinyl siding business to PVC maker Georgia Gulf Corp. Crane sold its vinyl fence manufacturing in 2008 to U.S. Fence Inc. In 2009, Crane sold the custom extrusion business to its managers, although Crane retained a minority interest in that firm.
Selling TimberTech leaves Crane Materials International as Crane Group’s only plastics construction products manufacturing. CMI makes marine seawalls, docks, piers and gangways.
“This was a difficult decision for our company and our family, but we think this acquisition positions the business to continue to be a leader in its product lines,” President Tanny Crane said in the news release.