Ashland Capital Partners has acquired Dedoes Industries, a maker of equipment used in the automotive refinishing market, from members of the Dedoes family.
Dedoes Industries designs and manufactures mixing machines, stirring lids, paint shakers, cabinets, blending tables, UV equipment and other accessories. The company’s products are used by paint manufacturers and body shops to mix, shake, proportion, formulate, cure and store both water and solvent based paint. Dedoes Industries was founded in 1941 by Arnold Dedoes and operates a 100,000 sq. ft. facility in the Detroit suburb of Walled Lake (www.dedoes.com). The company is led by President Dave Pratt.
Ashland Capital Partners invests in companies with annual revenues of at least $10 million and cash flows of at least $3 million. Sectors of interest include industrial manufacturing and services; distribution and logistics; and business services. The firm was co-founded by John Lorentzen and Jim Lynch and is based in Chicago (www.ashlandcap.com).
Graycliff Partners provided subordinated debt and equity financing to back Ashland’s acquisition. “Dedoes represents an attractive investment opportunity given its leading position within its market niche, combined with a stable revenue base tied to the auto aftermarket,” said Andrew Trigg, Managing Partner at Graycliff.
Graycliff invests from $5 million to $25 million of equity and mezzanine capital in companies with revenues of at least $10 million and EBITDA margins of 10% or higher. Sectors of interest include manufacturing, services and distribution. Both control and minority investments are considered. The firm was formed in December 2011 by the former investment team of HSBC Capital. Graycliff Partners is headquartered in New York with an additional office in São Paulo (www.graycliffpartners.com).
© 2016 Private Equity Professional • 10-12-16
