AZEK completes divestiture of Scranton Products to Sky Island Capital

Published 24/06/2025, 12:42
AZEK completes divestiture of Scranton Products to Sky Island Capital

CHICAGO - The AZEK Company Inc. (NYSE:AZEK), currently valued at $7.44 billion, has completed the sale of its Scranton Products division to private equity firm Sky Island Capital, the company announced Tuesday. According to InvestingPro data, AZEK maintains a strong financial health rating with solid liquidity metrics.

Scranton Products, part of AZEK’s Commercial segment, manufactures high-density polyethylene (HDPE) bathroom partitions and lockers. The division has been in operation since 1978.

Rob Donlon, who has served as Vice President and General Manager of Scranton Products for over 20 years, will maintain his leadership role as the business transitions to new ownership. The division will continue to operate from its current location.

"We believe Sky Island brings the vision and focus needed to accelerate Scranton Products’ growth and success in the commercial space," said Jonathan Skelly, President of Residential and Commercial at The AZEK Company.

Jack Waterstreet, Managing Partner at Sky Island Capital, stated, "Their track record and market reputation speak for themselves, and we look forward to helping the company unlock its next phase of growth."

Sky Island Capital specializes in partnering with privately-held manufacturing companies across various sectors including advanced materials, industrial products, and technology.

William Blair & Company acted as financial advisor to AZEK, while Latham & Watkins LLP provided legal counsel for the transaction.

AZEK, headquartered in Chicago, manufactures outdoor living products including TimberTech decking and railing, AZEK and Versatex trim, and StruXure pergolas. The company, which generated $1.52 billion in revenue over the last twelve months, employs approximately 2,000 people and operates manufacturing and recycling facilities across nine states. InvestingPro analysis shows the company maintains moderate debt levels and strong liquidity, with current assets well exceeding short-term obligations.

The financial terms of the transaction were not disclosed in the press release statement. For deeper insights into AZEK’s financial health, valuation metrics, and growth potential, investors can access comprehensive analysis through InvestingPro, which offers detailed research reports covering over 1,400 US stocks.

In other recent news, Azek Company Inc. reported its financial results for the second quarter of fiscal year 2025, exceeding earnings expectations. The company achieved an adjusted earnings per share of $0.45, surpassing the forecasted $0.43, and its revenue reached $452.2 million, beating the projected $445.72 million. Meanwhile, Azek’s proposed merger with James Hardie Industries has cleared a significant hurdle, as the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act expired, bringing the merger closer to completion. In another development, DA Davidson raised Azek’s stock price target to $51 from $50, following the company’s strong financial performance and strategic moves in product distribution. Additionally, James Hardie announced plans to acquire Azek stock for $51 per share, with the acquisition expected to enhance retail penetration for Azek’s products. UBS maintained a Neutral rating on Azek, reflecting the ongoing confidence in the company’s financial position and strategic outlook. RBC analysts have forecasted further declines in lumber and oriented strand board prices, which are part of the broader market trends affecting the sector. These recent developments highlight Azek’s robust financial performance and strategic initiatives in the market.

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