By Soyoung Kim
NEW YORK, May 22 (Reuters) - Building products maker CPGInternational is being prepared for a sale by its private equityowner, a deal that could fetch between $1 billion and $1.5billion, according to three people familiar with the matter.
Buyout firm AEA Investors LP has hired Barclays andDeutsche Bank to find a buyer for CPG, which makesbuilding supplies for residential and commercial markets such asoutdoor decking and porch boards, the people said on Wednesday.
The company, which was acquired by AEA Investors in 2005 foran undisclosed sum, is expected to start conversations withpotential buyers in the next few weeks that could includeprivate equity firms as well as industry rivals, said one of thepeople.
They asked not to be identified because the sale process isnot public. Representatives for AEA Investors did notimmediately respond to requests for comment. Barclays andDeutsche Bank declined to comment.
The potential sale of CPG comes as investors are looking tocapitalize on a rebound in the U.S. housing market, which washit hard by the turmoil in the U.S. credit market in late 2007.Low interest rates and rising rents have pushed many consumersto buy homes, boosting the outlook for the housing and buildingproducts markets.
Headquartered in Scranton, Pennsylvania, CPG Internationalmakes synthetic construction and building products to replacewood, metal and other materials, according to its website.
Its products include deck, trim, rail molding; bathroompartitions, lockers and industrial plastic sheet products. Theyare sold under several brands such as AZEK Building Products,Santana Products and Comtec Industries.
Founded in 1968, AEA focuses on investing in middle-marketcompanies in the industrial products, specialty chemicals,consumer products and services industries.
Barclays (BARC)