Azek and TimberTech parent company sold to pension fund

By Catherine Kavanaugh
Staff Reporter

Published: August 19, 2013 9:10 pm ET
Updated: August 19, 2013 9:24 pm ET

Related to this story

Topics Construction Mergers & Acquisitions Pipe/Profile/Tubing Extrusion Deck & railing
Companies & Associations

CPG International Inc. announced Monday that it entered into a definitive agreement to be acquired by funds managed by Ares Management LLC and Ontario Teachers' Pension Plan (Teachers).

The seller is New York-based private equity firm AEA Investors LP, which bought CPG in May 2005. Senior management of the Scranton, Pa.-based manufacturer will retain a minority stake. Terms of the transaction were not disclosed.

A May story from Reuters had said that AEA expected to sell CPG for between $1 billion and $1.5 billion.

CPG International makes low-maintenance building materials designed to replace wood, metal and other traditional materials. Products include trim, molding and decks, shower stalls, lockers and playground equipment.

Key plastics brands include Azek Building Products and TimberTech wood-plastic decking.

When AEA bought CPG, the business had sales of about $220 million and its residential building products line consisted only of Azek trim. During the past eight years, despite the housing downturn, CPG made five acquisitions and invested approximately $55 million for capacity expansion. The company now has sales of more than $500 million.

"We are excited to partner with Ares and Teachers as they share our vision for continued growth at CPG. We have enjoyed a strong relationship with AEA in building the business and thank them for all of their support," Eric Jungbluth, CEO of CPG International, said in a release.

Earlier this year CPG announced plans to consolidate its TimberTech factories into a single large wood-plastic decking plant in Wilmington, Ohio. As a result, the company plans to close its Columbus, Ohio, decking operation. CPG also is closing a plant in Toronto that makes Azek railing.


Comments

Azek and TimberTech parent company sold to pension fund

By Catherine Kavanaugh
Staff Reporter

Published: August 19, 2013 9:10 pm ET
Updated: August 19, 2013 9:24 pm ET

Post Your Comments


Back to story

Market Reports

Flexible Packaging Trends in North America

North America represents about 30 percent of the global consumption of flexible packaging. Annual growth in this region is forecast at 4 percent during the next 5 years.

For more insight on growth opportunities, drivers of growth and the outlook for 2015, download this report.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 billion plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Upcoming Plastics News Events

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

More Events