RECENT RELEASES
Associated Materials, Inc.-
Business
Associated Materials, Inc. (“AMI”) was a vertically integrated manufacturer and value added distributor of exterior residential building products. The company’s core products included vinyl windows, vinyl siding, aluminum and steel siding and accessories. Products were sold on a wholesale basis through the company’s dual-distribution network in the United States and Canada, consisting of more than 120 owned supply centers and approximately 250 independent dealers.
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Harvest Partners Investment
In April 2002, Harvest purchased AMI with the existing management team. To fund the acquisition Harvest arranged the debt financing, which included a senior credit facility and a high yield bond financing. In addition, Harvest arranged equity co-investment capital for the transaction. Harvest completed a dividend recapitalization of Associated Materials in March 2004, a second recapitalization with Investcorp in December 2004, and a sale to Hellman & Friedman in October 2010.
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Investment Thesis
- Market leader
- Vertically integrated business model
- Reputation for high levels of customer service
- Favorable industry dynamics
- Significant margin improvement opportunities
