| NEW YORK
NEW YORK Aug 15 Private equity firm Kelso & Co
is in advanced talks to sell Custom Building Products Inc to
peer Quikrete Companies Inc, in a deal that could value the
company at between $700 million and $800 million, three people
familiar with the matter said this week.
The people asked not to be named because the matter is not
public. Representatives for Kelso and Barclays declined to
comment. Quikrete and Custom Building Products did not respond
to requests for comment.
Kelso had hired Barclays Plc to find a buyer for
Custom Building Products, which makes supplies for home
furnishings and construction and counts Home Depot Inc as
a primary retail partner, Reuters reported in June.
Kelso bought California-based Custom Building Products for
$600 million in 2005.
The private equity firm is among a number of buyout firms
looking to divest assets in the housing and building products
sector through a public offering or private sale as the U.S.
housing market rebounds from a prolonged slump following the
Low interest rates and rising rents have pushed many
consumers to buy homes, boosting the outlook for the housing and
building products markets.
Based in Atlanta, privately-held Quikrete is the biggest
maker of packaged concrete and cement mixes in the United States
and Canada, according to its website.
Another building products maker, CPG International Inc, has
also been put up for sale by private equity owner AEA Investors
LP and has attracted interest from private equity firms TPG
Capital LP, Warburg Pincus LLC, Ares Management LLC and
Berkshire Partners LLC in deal that could fetch up to $1.5
billion, Reuters reported last month.