M&A Deal Summary

AZEK Acquires Versatex Building Products

On May 29, 2018, AZEK acquired building materials company Versatex Building Products from Highlander Partners and AEA Investors

Acquisition Highlights
  • This is AZEK’s 1st transaction in the Building Materials sector.
  • This is AZEK’s 1st transaction in the United States.
  • This is AZEK’s 1st transaction in Pennsylvania.

M&A Deal Summary

Date 2018-05-29
Target Versatex Building Products
Sector Building Materials
Buyer(s) AZEK
Sellers(s) Highlander Partners
AEA Investors
Deal Type Add-on Acquisition
Advisor(s) Rothschild Global Advisory (Financial)

Target

Versatex Building Products

Aliquippa, Pennsylvania, United States
Versatex Building Products LLC is a manufacturer and supplier of cellular PVC building products. The company’s products include trimboards, sheets, cornerboards, beadboards, skirtboards, wraps, beaded profiles, soffit systems, molding profiles, and finishing products.

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Buyer(S) 1

Buyer

AZEK

Chicago, Illinois, United States

Category Company
Sector Building Materials
Employees2,236
Revenue 1.4B USD (2023)
DESCRIPTION

AZEK is a manufacturer of beautiful, low-maintenance residential and commercial building products, and is committed to accelerating the use of recyclable materials. The company is completely focused on leveraging our expertise in materials science and its customer-centric approach to engineer and manufacture the most beautiful, most sustainable building products to improve the lives and businesses of our customers. AZEK is based in Chicago, Illinois.


DEAL STATS #
Overall 1 of 3
Sector (Building Materials) 1 of 2
Type (Add-on Acquisition) 1 of 3
State (Pennsylvania) 1 of 1
Country (United States) 1 of 3
Year (2018) 1 of 1
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2020-02-03 Return Polymers

Ashland, Ohio, United States

Return Polymers is a developer, implementation, and delivery of recycled PVC compound solutions. Return Polymers is based in Ashland, Ohio.

Buy -

Seller(S) 2

SELLER

Highlander Partners

Dallas, Texas, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 2004
PE ASSETS 3.0B USD
Size Large
Type Sector Agnostic
DESCRIPTION

Highlander Partners LP is a private equity firm focuses on making both direct private equity and mezzanine investments in companies located in US and Europe. The firm seeks to target to invest in small and mid-size private companies with strong management teams, fundamentally strong operations and positive cash flows. HP looks to invest $10 to $50 million as an equity and $10 to $25 million in mezzanine financing in companies with revenues of $10 to $500 million and enterprise value up to $100 million. Specific areas of interest include manufacturing, food, healthcare products and services, and healthcare IT, retail and building materials. Types of transaction include buyouts, growth capital, divestitures, consolidation and recapitalization. Highlander Partners LP was formed in 2004 and is based in Dallas, Texas with additional office in Warszawa, Poland.


DEAL STATS #
Overall 14 of 31
Sector (Building Materials) 3 of 4
Type (Add-on Acquisition) 9 of 20
State (Pennsylvania) 1 of 1
Country (United States) 11 of 22
Year (2018) 1 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2018-01-16 Kernel Season s

Elk Grove Village, Illinois, United States

Kernel’s product portfolio includes more than a dozen popcorn flavors, ranging from simple butter and white cheddar to garlic parmesan and cheesy caramel corn, as well as popcorn oils and drizzles. The Company’s products are sold in more than 22,000 retailers, including mass merchants, grocery and specialty stores, throughout North America and internationally. The products also can be found in movie theaters in more than 30 countries worldwide, accounting for over 32,000 screens. Kernel Season's was formed in 1999 and is based in Elk Grove Village, Illinois.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2018-07-06 Queen City Candy

Greendale, Indiana, United States

Queen City Candy is a manufacturer of gummies, jellies, and fruit snacks. Queen City Candy is based in Greendale, Indiana.

Buy -
SELLER

AEA Investors

New York, New York, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1968
PE ASSETS 19.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

AEA Investors is a private investment firm focused on investing in and acquiring businesses headquartered primarily in the US, Europe, and China. AEA looks for companies operating in stable to growing industries with a proven ability to generate positive cash-flow. Broad sectors of interest include value-added industrial products/services, specialty chemicals, consumer products, and services. In addition to its primary middle-market private equity fund, AEA maintains additional funds targeted towards mezzanine financing, senior secured debt, and small business buyouts. AEA Investors was formed in 1968 and is based in New York City.


DEAL STATS #
Overall 52 of 79
Sector (Building Materials) 4 of 4
Type (Add-on Acquisition) 19 of 26
State (Pennsylvania) 7 of 8
Country (United States) 49 of 71
Year (2018) 3 of 6
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2018-04-24 Springs Window Fashions

Middleton, Wisconsin, United States

Springs Window Fashions is a manufacturer and marketer of custom and stock window coverings and drapery hardware to retail and commercial customers, as well as independent designers, franchisors, and decorators. Springs Window Fashions was founded in 1939 and is based in Middleton, Wisconsin.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2018-08-01 Connexus

American Fork, Utah, United States

Connexus is a holding company for a strategy to consolidate the large and fragmented specialty contact center outsourcing market. ROI Solutions is the first platform company within Connexus providing highly technical and customized inbound and outbound customer service and sales solutions to B2C and B2B customers across a diversified base of stable end markets. Connexus was founded in 2018 and is based in American Fork, Utah.

Buy -