IPO Filing: Associated Materials Group, Residential Building Products

By Jon C. Ogg Updated Jul 16, 6:19AM EDT · Published Jul 15, 3:59PM EDT

Associated Materials Group Inc. has filed its paperwork with the Securities & Exchange Commission to conduct an initial public offering (IPO) of its common stock. The IPO is expected to trade under a yet to be determined stock ticker on either the New York Stock Exchange or the Nasdaq.

After the completion of the offering, certain investment funds affiliated with private equity firm Hellman & Friedman will continue to beneficially own a majority of the voting power of all outstanding shares of Associated Materials’ common stock. Associated Materials Group will also be classified as a “controlled company” within the meaning of the corporate governance standards of Nasdaq and/or NYSE. The underwriting group includes Goldman Sachs, Barclays, UBS Investment Bank, and Deutsche Bank Securities.

Here is the company’s description:

We are a leading, vertically integrated manufacturer and distributor of exterior residential building products in the United States and Canada. We produce a comprehensive offering of exterior building products, including vinyl windows, vinyl siding, vinyl railing and fencing, aluminum trim coil, aluminum and steel siding and related accessories, which we produce at our 11 manufacturing facilities. We also sell complementary products that are manufactured by third parties, such as roofing materials, cladding materials, insulation, exterior doors, equipment and tools, and provide installation services. We distribute these products through our extensive dual-distribution network to over 50,000 professional exterior contractors, builders and dealers, whom we refer to as our “contractor customers.

The company’s product sales are broken down as follows for 2012: vinyl windows (31%), vinyl siding (20%), metal products (15%) and third-party manufactured products (27%). For 2012 the company projected that 70% of sales were for the residential repair and remodeling markets, and the other 30% were from the new construction market. Its net sales for the year ended December 29, 2012 came to $1.1425 million, with adjusted EBITDA of $96.4 million, and a net loss of $38.4 million.

FULL IPO FILING

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About the Author Jon C. Ogg →

Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.