American Bath Group Is Exploring Potential $2 Billion Sale

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American Bath Group is exploring strategic options, including a sale, that could value the manufacturer of bathtubs and showers at as much as $2 billion, according to people with knowledge of the matter.

The Lone Star Funds-backed company is working with an adviser to run a sales process, said the people, who asked not to be identified because they weren’t authorized to speak publicly.

The business is likely to attract interest from peers and private equity firms, the people said. Lone Star bought the Savannah, Tennessee-based company in 2016 from fellow buyout firm Sterling Group.

A spokeswoman for Lone Star declined to comment, while a representative for American Bath Group didn’t respond to requests seeking comment.

A deal for American Bath Group would be the latest in a wave of building products transactions in the past 12 months.

HD Supply Holdings Inc. agreed to sell its White Cap business to an affiliate of Clayton, Dubilier & Rice for $2.9 billion in August.

Bridgestone Corp. is considering a sale of its Firestone Building Products for about $2.5 billion, people familiar with the matter said this month.

Lone Star, based in Dallas and founded by John Grayken, invests in assets including real estate, equity and credit across Europe and North America, according to its website.

©2020 Bloomberg L.P.

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