CPG International, the building materials maker, is being prepared by its ownership for a sale. It was projected that the revenue from the deal would be around US$1 billion to US$1.5 billion, as confirmed with Reuters by the three sources knowledgeable with the plan.
Sources added on Wednesday, AEA Investors LP, owners of CPG International, has engaged Deutsche Bank and Barclays to solicit prospective buyers of CPG. AEA Investors purchased CPG International back in 2005 for an undisclosed amount. They are expected to sit down with prospective buyers in the coming weeks. Probable buyers may include industry rivals and private equity firms, related by one of the sources.
The sale of CPG was brought about by foresight of the investors on the future the U.S. housing market that took a plunge due to recession that happened in late 2007. Current increases of rental fees and low interest rates to purchase houses, have pushed people to acquire than rent their homes. This results in the recovery of the U.S. housing market which includes as accessory, the building products market.
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