Firms & Funds

CPG Rating Could Fall After Buyout

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  • Debt rating firm takes aim at CPG buyout from AEA
  • CPG valued at estimated $1.5 billion
  • Ares, Ontario Teachers buying building products firm

AEA Investors LP agreed to sell CPG International for an undisclosed sum. Sister news service Reuters reported CPG attracted several bidders, with a deal value estimated at $1.5 billion. CPG International rang up revenue of $491 million for the twelve months ended June 30.

Moody’s said the deal is potentially credit negative, but it added it does not immediately impact the company’s rating outlook because the structure of the transaction, including terms and conditions of any related financing, has not been announced. Scranton, Pennsylvania-based CPG International is a manufacturer of building products under brands including Azek and TimberTech.

Funds advised by AEA Investors bought the firm in 2005, when CPG International had $220 million in revenue. CPG International made five acquisitions and invested approximately $55 million for capacity expansion.

Eric Jungbluth, chief executive officer of CPG International, said Ares and the Ontario Teachers’ Pension Plan share the company’s vision for continued growth, according to a prepared statement.