Versatex, a Portfolio Company of Highlander Partners, Announces Completion of Sale to The AZEK Company

DALLAS, June 18, 2018 /PRNewswire/ -- Versatex Holdings, LLC ("Versatex" or "the Company"), a leading manufacturer of cellular PVC building products serving both the new construction and renovation/remodel markets, has announced the completion of its sale to The AZEK Company ("AZEK").  AZEK is a portfolio company of Ares Management LLC and Ontario Teachers' Pension Plan.  Versatex's management team will remain with the business and continue operations from its production facility in Aliquippa, PA.  Versatex, a Highlander investment since September 2014, is a leading innovator and manufacturer of high-quality, branded exterior trim, sheet, mouldings and other innovative products with an expanding range of building applications.  

The sale represents the culmination of a deliberate strategy that Highlander and Versatex management put in motion in 2014 to strategically and aggressively invest in Versatex to expand capacity, products, geographic coverage and the sales team.  The investment thesis supported the opportunity to capture the conversion and demand of alternative building material products.  Highlander's strategy was aimed at capturing and accelerating the adoption of cellular PVC building products.  This effort was both targeted in existing geographies and also focused to drive awareness into new geographies.

"Over the last three and a half years, Highlander and Versatex expanded the sales force more than threefold to drive and support accelerating growth.  At the same time, to meet the anticipated increase in demand for cellular PVC trim, Highlander invested in a significant building expansion of Versatex's manufacturing facility in Aliquippa for additional capacity, added new extrusion lines and completed an office expansion with a state-of-the-art sales center for customer education.  These strategic and purposeful investments in both personnel, equipment and facilities resulted in Versatex achieving strong double-digit growth in both revenue and EBITDA during Highlander's investment period," stated Mark Blanchat, Chairman of Versatex and a Partner at Highlander. 

Jeff L. Hull, Highlander's President and Managing Partner and board member of Versatex, added, "We are very pleased to accomplish the growth and capture the returns in this transaction.  More importantly, we believe that Versatex is very well positioned to continue to grow and expand its markets with very little change in its current strategy.  We appreciate what John Pace and the team have done to advance the Company over the past three and half years."

John Pace, CEO of Versatex, said, "We are very appreciative of the support that Highlander provided during our tenure and are excited to continue our growth in the alternative building materials market with AZEK."

Rothschild & Co. served as the exclusive financial advisor to Versatex in connection with this transaction.

About Highlander Partners
Highlander Partners, L.P. is a Dallas-based private investment firm with over $2.0 billion of assets under management. The firm focuses on making investments in businesses in targeted industries in which the principals of the firm have significant operating and investing experience, including basic manufacturing, food, chemicals, building materials, consumer products, and others. Highlander Partners uses a "buy and build" investment approach, creating value by helping companies grow organically and through acquisitions.  For more information, visit www.highlander-partners.com.

About Versatex Holdings LLC
Versatex manufactures and supplies cellular PVC building products. The Company's products include trimboards, sheets, cornerboards, beadboards, skirtboards, wraps, beaded profiles, soffit systems, molding profiles, and finishing products. It markets and sells its products through distributors/dealers in the United States and Canada. The Company was founded in 2003 and is based in Aliquippa, Pennsylvania. For more information about Versatex, please visit www.versatex.com.

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SOURCE Highlander Partners, L.P.