Skokie, Ill-based decking manufacturer Azek Co. is buying Aliquippa, Pa.-based cellular PVC building products manufacturer Versatex Holdings LLC to broaden its lines of exterior trim and mouldings.
Well known for its Azek-brand cellular PVC decking and TimberTech brand composite wood decks, the acquisition adds Versatex's cornerboards, beadboards, skirtboards, wraps, beaded profiles and soffit systems to Azek's product offerings for building envelopes.
Azek and Versatex officials announced May 30 that a deal is in the works and an agreement had been signed. No terms were disclosed.
With estimated sales of $360 million a year, Azek is the No. 10 pipe, profile and tubing extruder in North America, according to Plastics News' rankings. The company was formerly CPG International LLC.
Versatex ranks 85th in North America with an estimated $30 million a year in sales, according to Plastics News. The company is owned by Dallas-based private equity firm Highlander Partners, LP, which acquired it in 2014.
Versatex gives Azek a new growth platform to compete for business from residential and commercial builders in the new construction and remodeling markets, according to Azek CEO Jesse Singh.
"Azek's acquisition of Versatex will further expand and diversify our broad portfolio of high-quality home exterior and outdoor living products that help contractors, builders, developers and homeowners beautify homes," Singh said in a news release. "Versatex's focus on exterior trim and moldings will complement our presence in exterior decking, trim, moldings and columns, and Versatex's strength in sales execution will be a strong counterpart to our [research] and material science capabilities."
Versatex sells its products through distributors and dealers in the United States and Canada.
"It is our plan to maintain Versatex's go-to-market approach and existing distribution model post-close," Singh added.
Versatex CEO John Pace said the companies have complementary strengths and a shared commitment to customers and product innovation.
"We look forward to working together with Azek to address the opportunities that alternative materials offer the building envelope market," Pace said in a news release.
Cellular PVC products generally cost about three times more than wood but don't rot, peel or split and they can be easily milled, shaped and painted, which are qualities that appeal to a wide range of homeowners.
Versatex Chairman Mark Blanchat, a partner at Highlander, said the company is on the upswing.
"Versatex has continually grown in revenue and profitability while significantly expanding its salesforce and investing substantially in its production facility and capabilities," Blanchat said in a news release. "The team's efforts have positioned the company for greater future success, as cellular PVC building products continue to gain share from legacy wood-based offerings and achieve broader adoption in new geographies."