The AZEK® Company Announces Sale of Commercial Segment’s Scranton Products Business to Sky Island Capital – Business Wire

The AZEK Company Inc. Announces Divestiture of Scranton Products

Overview of the Transaction

The AZEK Company Inc. (NYSE: AZEK), a leading manufacturer of environmentally sustainable outdoor living products, has completed the divestiture of Scranton Products, a division within its Commercial segment, to Sky Island Capital, a private equity firm specializing in partnerships with privately-held manufacturing companies.

Strategic Focus on Sustainable Growth

Jonathan Skelly, President of Residential and Commercial at The AZEK Company, emphasized the significance of this transition for Scranton Products, highlighting Sky Island Capital’s vision to accelerate growth in the commercial sector. Scranton Products, established in 1978, is recognized for its high-quality HDPE plastic solutions, including durable bathroom partitions and lockers.

Leadership Continuity and Partnership

• Rob Donlon, Vice President and General Manager of Scranton Products with over 20 years of experience, will continue leading the business under new ownership.
• Jack Waterstreet, Managing Partner at Sky Island Capital, expressed commitment to supporting Scranton Products’ next growth phase.

Sky Island Capital’s Role in Manufacturing Growth

Sky Island Capital focuses on fostering growth in manufacturing companies across sectors such as advanced materials, industrial products, and technology. Their operational expertise and strategic partnership approach aim to enhance business development and sustainability.

Operational Continuity

Scranton Products will maintain operations at its current location, ensuring stability for employees, customers, and partners during and after the transition.

Advisory Support

• William Blair & Company served as financial advisor to The AZEK Company.
• Latham & Watkins LLP provided legal advisory services for the transaction.

Commitment to Sustainable Development Goals (SDGs)

Environmental Sustainability and Innovation (SDG 9, SDG 12, SDG 13)

• The AZEK Company designs and manufactures products using up to 85% recycled materials, significantly reducing waste and promoting responsible consumption and production (SDG 12).
• By replacing traditional wood with eco-friendly alternatives, the company contributes to climate action (SDG 13) and fosters innovation in sustainable industrial processes (SDG 9).

Decent Work and Economic Growth (SDG 8)

• The company employs approximately 2,000 people and supports local economies through its manufacturing and recycling facilities across multiple U.S. states.
• The divestiture ensures continued employment and operational stability for Scranton Products’ workforce.

Industry, Innovation, and Infrastructure (SDG 9)

The partnership with Sky Island Capital aims to accelerate growth and innovation within the manufacturing sector, promoting resilient infrastructure and sustainable industrialization.

Partnerships for the Goals (SDG 17)

The collaboration between The AZEK Company and Sky Island Capital exemplifies effective partnerships that leverage expertise and resources to advance sustainable business practices and growth.

About The AZEK Company

The AZEK Company Inc. is a market leader in the design and manufacture of beautiful, low-maintenance, and environmentally sustainable outdoor living products, including TimberTech® decking and railing, AZEK® and Versatex® Trim, and StruXure® pergolas. The company’s commitment to sustainability is demonstrated by its use of recycled materials, waste reduction efforts, and recognition as one of America’s Most Responsible Companies and among the world’s best companies in sustainable growth.

Key Sustainability Achievements

• Use of up to 85% recycled materials in products.
• Prevention of hundreds of millions of pounds of waste from entering landfills annually.
• Recognition by Newsweek, Barron’s, TIME, and Fast Company for sustainability and corporate responsibility.

Operational Footprint

The company operates manufacturing and recycling facilities in Ohio, Pennsylvania, Idaho, Georgia, Nevada, New Jersey, Michigan, Minnesota, and Texas, reinforcing its commitment to sustainable industrial practices and community engagement.

Additional Information

For more details on Scranton Products, visit scrantonproducts.com.

1. Sustainable Development Goals (SDGs) Addressed in the Article

1. SDG 9: Industry, Innovation and Infrastructure
   • The article highlights the manufacturing and innovation efforts of The AZEK Company and Scranton Products, focusing on advanced materials and sustainable manufacturing processes.
2. SDG 12: Responsible Consumption and Production
   • The AZEK Company’s commitment to using up to 85% recycled materials and reducing waste aligns with sustainable consumption and production patterns.
3. SDG 13: Climate Action
   • By producing eco-friendly products that replace wood and reduce landfill waste, the company contributes to climate action through sustainable industry practices.
4. SDG 8: Decent Work and Economic Growth
   • The continuation of operations and leadership roles at Scranton Products supports sustained economic growth and decent work conditions.

2. Specific Targets Under the Identified SDGs

1. SDG 9: Industry, Innovation and Infrastructure
   • Target 9.4: By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies.
2. SDG 12: Responsible Consumption and Production
   • Target 12.5: By 2030, substantially reduce waste generation through prevention, reduction, recycling, and reuse.
   • Target 12.2: Achieve the sustainable management and efficient use of natural resources.
3. SDG 13: Climate Action
   • Target 13.1: Strengthen resilience and adaptive capacity to climate-related hazards and natural disasters in all countries.
4. SDG 8: Decent Work and Economic Growth
   • Target 8.2: Achieve higher levels of economic productivity through diversification, technological upgrading and innovation.
   • Target 8.5: Achieve full and productive employment and decent work for all women and men.

3. Indicators Mentioned or Implied in the Article to Measure Progress

1. Indicator for SDG 9.4
   • Proportion of industries using recycled materials and clean technologies – The article mentions that AZEK products are made from up to 85% recycled material, indicating progress in sustainable industrial practices.
2. Indicators for SDG 12.5 and 12.2
   • Amount of waste recycled and prevented from landfills – The company keeps hundreds of millions of pounds of waste and scrap out of landfills annually.
   • Material reuse rate in production processes – The use of recycled content in manufacturing outdoor living products.
3. Indicator for SDG 8.2 and 8.5
   • Employment retention and leadership continuity – The article notes leadership continuity at Scranton Products and ongoing operations, reflecting stable employment.
   • Growth metrics of manufacturing companies supported by strategic partnerships – Sky Island Capital’s role in accelerating growth.
4. Indicator for SDG 13.1
   • Reduction in environmental impact through sustainable product design – Replacement of wood with durable, eco-friendly alternatives reduces carbon footprint.

4. Table of SDGs, Targets, and Indicators

SDGs	Targets	Indicators
SDG 9: Industry, Innovation and Infrastructure	9.4: Upgrade industries to be sustainable with increased resource-use efficiency and clean technologies.	Proportion of industries using recycled materials and clean technologies (e.g., AZEK’s use of up to 85% recycled materials).
SDG 12: Responsible Consumption and Production	12.2: Sustainable management and efficient use of natural resources. 12.5: Substantially reduce waste generation through prevention, reduction, recycling, and reuse.	Amount of waste recycled and prevented from landfills (hundreds of millions of pounds of waste kept out of landfills). Material reuse rate in production processes.
SDG 13: Climate Action	13.1: Strengthen resilience and adaptive capacity to climate-related hazards.	Reduction in environmental impact through sustainable product design (replacement of wood with eco-friendly alternatives).
SDG 8: Decent Work and Economic Growth	8.2: Achieve higher levels of economic productivity through diversification and innovation. 8.5: Achieve full and productive employment and decent work for all.	Employment retention and leadership continuity at Scranton Products. Growth metrics supported by strategic partnerships (Sky Island Capital’s involvement).

Source: businesswire.com