Lone Star Said to Be Near Deal for Sterling’s American Bathby and
Maker of acrylic bath appliances said valued at $600 million
No agreement finalized and talks may not lead to deal
The firm is in talks with Sterling Group, American Bath’s current owner, to acquire the maker of acrylic showers and tubs, said the people, who asked not to be identified because the information is private. American Bath, based in Savannah, Tennessee, could fetch about $600 million in a sale, two of the people said, though that price could still change, another person said.
No agreement has been reached, and talks could still fall through, the people said.
American Bath, which includes the Praxis and Aquatic brands in its portfolio, designs and manufactures fiberglass reinforced plastic, sheet molded compound, and acrylic bathtubs and showers. Kevin Garland, a partner at Sterling, serves on the company’s board, according to the investment firm’s website.
Lone Star, which was founded by Grayken, 60, in 1995, has raised more than $65 billion for investing across strategies including buyouts, real estate and credit, according to its website. The group raised $7.25 billion for its ninth buyout fund in 2014, according to data compiled by Bloomberg.
Representatives for Lone Star and Sterling declined to comment. A representative for American Bath didn’t respond to e-mail requests for comment.