Kelso & Company, a private equity firm, hired Barclays to look for potential buyers for Custom Building Products. This company is a supplies home furnishing and construction materials to Home Depot Inc. its main retail partner. This was stated by three people with full knowledge of the report said Wednesday.
Following the credit crisis in the US housing market, Kelso joins numerous buyout firms that are seeking to strip assets in housing and building products sector through IPO or private sale.
In 2005, Kelso bought Custom Building Products for US$600 million. Custom Building Products is the maker of products including ceramic tiles, grout mortars, and thin veneers. Currently, the company is valued roughly US$800 million according to one source.
According to two sources, initial offers for Custom Building Products were due earlier this week. Kelso representatives declined to comment. Barclays refused giving statements for said reports.
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