Ares Management & Ontario Teachers’ Pension Plan to Acquire CPG International
LOS ANGELES & TORONTO — CPG International Inc. announced today that it has entered into a definitive agreement to be acquired by funds managed by Ares Management LLC and Ontario Teachers' Pension Plan. Ares and Teachers' will hold an equal economic interest in CPG, with senior management retaining a minority stake. CPG is currently majority owned by funds advised by AEA Investors LP. Terms of the transaction were not disclosed, and the close of the transaction is subject to regulatory approval and other customary closing conditions.
CPG International is a manufacturer of highly engineered low-maintenance building materials designed to replace wood, metal and other traditional materials in a variety of building applications. CPG sells its products into the residential, commercial, and industrial markets under the leading brand names of AZEK, TimberTech, VYCOM, and Scranton Products.
"We have known the Ares and Teachers' teams for several years and are excited to partner with them as they share our vision for continued growth at CPG. We have enjoyed a strong relationship with AEA in building the business and thank them for all of their support," said Eric Jungbluth, Chief Executive Officer of CPG International.
"We are delighted to join Teachers' and CPG's senior management team as long-term investors in the company," said Bennett Rosenthal, Co-Head of Private Equity at Ares Management. "CPG is recognized as an industry leader and innovator, and we are looking forward to participating in the company's continued success."
"This transaction continues our longstanding strategy of investing alongside strong management teams in high-quality businesses," said Jane Rowe, Senior Vice-President of Teachers' Private Capital and Infrastructure. "We believe CPG is well-positioned for long-term growth as consumers continue to recognize the superior value proposition offered by low-maintenance building materials."
Sullivan & Cromwell LLP acted as legal advisor, and JP Morgan Securities, LLC and UBS Investment Bank acted as co-financial advisors to Ares and Teachers'. Fried, Frank, Harris, Shriver & Jacobson LLP acted as legal advisor, and Barclays and Deutsche Bank Securities Inc. acted as co-financial advisors to CPG International.
About CPG International Inc. (www.cpgint.com)
Headquartered in Scranton, Pennsylvania, CPG International Inc. is a manufacturer of market-leading brands of highly engineered, premium, low-maintenance, building products for residential commercial and industrial markets designed to replace wood, metal and other traditional materials in a variety of construction applications. The Company's products are marketed under several brands including AZEK® Trim and Moulding, AZEK® Deck, AZEK® Rail, TimberTech®, TuffTecTM, Duralife Lockers®, SeaboardTM, Hiny Hider® and Celtec®, as well as many other brands.
About Ares Management LLC
Ares Management LLC is a global alternative asset manager and SEC registered investment adviser with approximately $66 billion of committed capital under management and approximately 700 employees as of July 1, 2013. Ares is headquartered in Los Angeles with professionals located across the United States, Europe and Asia and invests across the capital structure – from senior debt to common equity. Ares' investment activities are managed by dedicated teams in its Capital Markets, Private Debt, Private Equity and Real Estate investment platforms. Ares Management was built upon the fundamental principle that each platform benefits from being part of the greater whole. This multi-asset class synergy provides its professionals with insights into industry trends, access to significant deal flow and the ability to assess relative value.
For additional information, visit www.aresmgmt.com.
About Ontario Teachers' Pension Plan
With $129.5 billion in net assets as of December 31, 2012, the Ontario Teachers' Pension Plan is the largest single-profession pension plan in Canada. An independent organization, it invests the pension fund's assets and administers the pensions of 303,000 active and retired teachers in Ontario. For more information, including our 2012 and previous annual reports, visit www.otpp.com. Follow us @OtppInfo.