American Securities Buying Unifrax Again

Target: Unifrax Corp.

Price: $927 million

Sponsor: American Securities

Seller: AEA Investors

American Securities is in talks to buy Unifrax Corp. for a second time, sources told sister Web site peHub.

American Securities, a mid-market buyout shop, was expected to announce the acquisition before the end of November, one person said. The deal has been in the works for some time but choppy credit markets have hampered the transaction, a banker said.

American Securities is buying Unifrax for about $927 million, Dow Jones LBO Wire reported. The buyout shop is putting in about $495 million of equity, the story said.

New York-based American Securities previously owned Unifrax from September 2003 to May 2006. It sold the company in 2006 to AEA Investors for an undisclosed amount. Officials for AEA couldn’t be reached for comment.

Niagara Falls, N.Y.-based Unifrax makes ceramic fiber insulation products that are used in industrial, automotive and fire protection applications. The company has 20 plants in the United States, Europe, Asia and Latin America and employs about 1,400 workers globally.

Unifrax is in the market for a $540 million loan to back the sale to American Securities, according to Thomson Reuters Loan Pricing Corp., which tracks the fiinancing market. Goldman Sachs is leading the financing, the story said.

American Securities typically focuses on consumer, health care and industrial companies, as well as the services, information and media sectors. The firm is currently investing out of its fifth fund, American Securities Partners V LP, which raised $2.3 billion in 2008.

American Securities declined comment.

(Luisa Beltran is a senior writer for peHub.)