TPG Capital, Warburg Pincus, Ares Management and Berkshire Partners are going head to head for the asset according to Bloomberg, which cited four people familiar with the matter.
AltAssets reported in May that AEA had hired Barclays and Deutsche Bank to prepare the sale after picking up the firm for an undisclosed sum in 2005.
CPG makes high-performance building products for the residential, commercial and industrial markets, including porches and decking, locker systems and counter tops.
Bloomberg said the private equity firms were through to the second round of bidding and were preparing to submit offers by the middle of August.
AEA is one of the oldest buyout houses in the business having been founded in 1968, and currently has more than $3.6bn under management.
It targets deals in the speciality chemicals, value-added industrial, consumer products and service industries related to these sectors.
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