Investcorp, the global investment group, announced Tuesday that it has made a $150 million investment in Associated Materials Incorporated (AMI), a leading manufacturer and distributor in the residential building products industry in North America. This investment is now being offered to Investcorp’s client base.
AMI sells products, including vinyl windows, vinyl siding, aluminum trim coil, aluminum and steel siding and accessories, as well as vinyl fencing, decking and railing, predominantly to the refurbishment market. The company reported net sales of $820.3 million for the first nine months of 2004.
Gary Long, Chief Operating Officer of Investcorp, said: “Over the past few years, AMI’s senior management team has made tremendous progress from both a financial and operational standpoint. The team has increased core product market share by simplifying and focusing the business, acquiring and integrating new businesses, as well as by financing its growth cost effectively. AMI will continue to be led by Michael Caporale and the talented team that has established its strong competitive position.
“We see significant opportunity for additional growth of this well-run, high-service company, particularly in the large and fragmented window market, by capitalizing on its strong distribution network. Investcorp’s business model has always recognized that actively assisting portfolio company management teams is the optimum way to build value for all constituencies. Our post acquisition team will be offering operations and business experience to assist AMI in addressing the challenges involved in continuing to build this strong and competitive business.”
AMI’s President and Chief Executive Officer, Michael Caporale, said: “Investcorp is a highly respected private equity investment firm with significant experience in the building product industry and related sectors. We welcome their strategic, as well as financial, support as we continue to pursue a range of growth opportunities.”