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American Bath Group could be valued at USD 2bn following strategic review: Bloomberg
Posted on Friday, 11 September 2020 11:31
US-based bathroom appliances manufacturer American Bath Group is exploring a range of strategic alternatives that could value the business at around USD 2.00 billion, according to Bloomberg.
Citing people familiar with the matter, the news provider observed that the company is working with an advisor to review options, including a sales process.
The deal could attract interest from strategic players and private equity groups, the insiders noted, asking not to be named as the situation is still private.
American Bath Group is majority owned by Lone Star Funds, which paid USD 750.00 million for the business from Sterling Group Partners III in 2016.
Founded in 2014, the company provides bathroom products and designs and manufactures fiberglass reinforced plastic, sheet moulded compound and acrylic bathtubs and showers.
Headquartered in Savannah, Tennessee, American Bath Group makes bathtubs and showers and would be the latest in a wave of building products transactions in the last 12 months.
Capitala Investment Advisors invested USD 15.50 million in senior debt and equity into the company in 2018.
According to Zephyr, the M&A database published by Bureau van Dijk, there have been 68 deals targeting building material, garden equipment and supplies dealers announced worldwide in 2020 to date.
In the largest of these, Select Equity Group has agreed to acquire a minority stake in US-based farm, ranch, home and garden products retailer Tractor Supply Company for USD 321.06 million.
This was followed by BNP Paribas Arbitrage acquiring an undisclosed minority holding in the Home Depot for USD 189.81 million.
Carlsen Fritzoe Handel, Tractor Supply Company, BHG Group, Bygghemma Group First and the Building Company, among others, have also been targeted in the year so far.
© Zephus Ltd