Ares Management and the Ontario Teachers' Pension Plan said that they will purchase Pennsylvania-based CPG International Inc. A manufacturer of engineered building materials, CPG International makes porch boards, outdoor decking and plastic restroom partitions for the residential and commercial markets. Private equity firm AEA Investors owns CPG.

Once the transaction is completed, Ares Management and Ontario Teachers' will hold an equal stake in the building products maker. A minority stake will be retained by the management of CPG International. No financial details about the transaction were disclosed. Sources told Reuters, however, that the price tag for CPG could reach as much as USD 1.5 billion. 

The US housing market may have begun to recover but building materials manufacturers have so far lagged in growth. Lack of financing and labor shortages contributed to the challenges faced by the building products industry. With their CPG purchase, Ares and Ontario Teachers' are betting that the industry will rebound soon, Reuters reported.