Valentus Specialty Chemicals, a portfolio company of Huron Capital Partners, has acquired the floor finishes business of Precision Technology.
Huron Capital formed Valentus in May 2014 in partnership with Ray Chlodney, John Ragazzini and Bob Taylor to pursue a buy-and-build strategy in the industrial coatings sector. According to the Cincinnati-based ChemQuest Group (www.chemquest.com), the US coatings market is fragmented and large with annual revenues of $22 billion.
The acquired floor finishes business of Precision Technology includes the Swedish Finish and Swedish Crown product lines (an alcohol-based finish designed for use in high traffic residential and commercial areas), and the Precision Polyurethane oil-based finish product line (an oil-modified finish that provides protection to residential and commercial wood floors). Precision Technology is based in Memphis (www.pretechfinishes.com).
“This is the type of strategic add-on acquisition we envisioned when we created the Valentus platform,” said Mike Beauregard, a senior partner at Huron Capital.
Valentus closed its first investment in December 2015 with the acquisition of National Paint Industries (NPI), a manufacturer of specialty coatings used in residential and commercial flooring, industrial protective maintenance, pool, and marine applications. NPI had been owned and operated by brothers Mike and Don Schnurr, whose father founded the business in 1959. The Schnurr brothers are now shareholders in Valentus and continue to run the day-to-day operations at NPI which is based south of New York City in North Brunswick, NJ (www.ipaint.us). The production of the acquired coating businesses of Precision Technology will be move to NPI’s facility in North Brunswick.
“The NPI team has known Precision for a long time and has always thought highly of the business. We are excited to add these products to the Valentus lineup as we look to expand our presence in the floor coatings market,” said Valentus CEO Ray Chlodney. “In partnership with Huron Capital, we are actively looking for additional complementary coatings companies as we continue to grow the Valentus platform.”
Huron Capital Partners invests up to $70 million per transaction in middle market companies that have revenues up to $200 million and EBITDAs of $5 million or more. Sectors of interest include specialty manufacturing, business services, consumer goods & services, and healthcare. The firm was founded in 1999 and currently manages over $1.1 billion in committed equity through four private equity funds. Huron Capital Partners has offices in Detroit and Toronto (www.huroncapital.com).
Lanny Trottman, the founder and owner of Precision Technology, will retain ownership of Precision’s wood filler and wood patch products, maintenance products, and roller and brush products, which are not part of the transaction.
© 2016 Private Equity Professional • Private Equity’s Leading News Magazine • 4-20-16