Valentus Specialty Chemicals, a portfolio company of Huron Capital Partners, has acquired Absolute Coatings, the wood floor finishes business of Paint Over Rust Products.
Absolute Coatings manufactures wood floor finishes under the ABSCO, Last-n-Last, and TREK-Plus brands. The company was founded in 1923 and is based in New Rochelle, NY (www.absolutecoatings.com).
According to Huron Capital, the acquisition of Absolute adds technological expertise to the Valentus platform along with expanded distribution in the Northeast and Mid-Atlantic regions. David Sherman, the CEO and owner of Paint Over Rust Products, will join Valentus’ Board of Directors.
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. The buy of Absolute Coatings is the third acquisition for Valentus under Huron ownership. Valentus closed its first investment in December 2015 with the acquisition of National Paint Industries, a manufacturer of specialty coatings used in residential and commercial flooring, industrial protective maintenance, pool, and marine applications. In April 2016, Valentus acquired the floor finishes business of Precision Technology.
“With three acquisitions in eight months, the Valentus buy-and-build model is progressing in line with our expectations,” said Mark Miller, Vice President at Huron Capital. “We continue to work with our leadership team to identify and pursue strategic acquisitions as we grow the Valentus platform.” According to the Cincinnati-based ChemQuest Group (www.chemquest.com), the US coatings market is fragmented and large with annual revenues of $22 billion.
“We believe the partnership with Absolute will significantly enhance our growth trajectory,” said Ray Chlodney, CEO of Valentus. “ABSCO, Last-n-Last, and TREK-Plus are premium brands with differentiated technologies and excellent growth opportunities, and they’re a great complement to our existing portfolio of brands at National Paint Industries.”
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. Huron was founded in 1999 and currently manages over $1.1 billion in committed equity through four private equity funds. The firm has offices in Detroit and Toronto (www.huroncapital.com).
© 2016 Private Equity Professional • 8-12-16
