UPDATE 2-Ares, Ontario Teachers to buy building products maker CPG
* Financial terms not disclosed
* Deal could be worth $1.5 billion -source says
* Ares, Ontario Teachers to own equal share of CPG
* CPG management to retain minority stake
Aug 19 (Reuters) - Ares Management LLC and Ontario Teachers Pension Plan said on Monday they would buy building-products maker CPG International Inc, betting on a long-awaited recovery for an industry that has lagged the rebound in the broader U.S. housing market.
Building-products makers such CPG, currently owned by private equity firm AEA Investors LP, have not seen the same growth as U.S. homebuilders in the past two years as they have faced labor shortages and a lack of financing options.
Financial terms of the deal were not disclosed but a person familiar with the matter, who was not authorized to disclose financial details publicly, said it values Scranton, Pennsylvania-based CPG at around $1.5 billion, including debt.
Reuters reported in July, based on conversations with people familiar with the matter, that Ares was bidding for CPG against three other private equity firms: TPG Capital LP, Warburg Pincus LLC and Berkshire Partners LLC.
CPG makes building supplies such as outdoor decking, porch boards and plastic restroom partitions for the residential and commercial markets. Continued...