PPG Industries has signed an agreement to acquire The Crown Group, a provider of coating services to the automotive, agricultural, heavy truck and industrial markets. The Crown Group has been a portfolio company of High Road Capital Partners and Charter Oak Capital Partners since May 2013.
The Crown Group provides coatings for electrocoat, powder coat, and liquid applications to the automotive, agriculture, construction, heavy truck and alternative energy industries. The company also provides assembly, warehousing, and sequencing services, as well as component finishing operations and inventory management. The Crown Group has 11 facilities in the Michigan cities of Detroit, Livonia, and Shelby Township; Asheboro, NC; Franklin, GA; East Moline, IL; Fort Wayne, IN; Greenville and Spartanburg, SC; Portland, TN; and Waterloo, IA. The Crown Group has approximately 950 employees and is headquartered near Detroit in Warren, MI (www.thecrowngrp.com).
“Crown is a leader in coatings application and this acquisition will enhance PPG’s ability to service its original equipment manufacturer customers,” said Viktor Sekmakas, PPG’s Executive Vice President. “PPG continues to help customers simplify this portion of the product finishing process, enabling them to focus on their core competencies of product design and manufacturing. Our growing coatings application services capability allows PPG to have a more intimate understanding of our manufacturing customers’ coatings needs and offer enhanced, end-to-end solutions and services.”
High Road invests in manufacturing, service, or value-added distribution businesses with revenues of $10 million to $100 million and EBITDAs of $3 million to $10 million. High Road has completed 42 transactions – 17 platform investments, 20 add-on acquisitions and five exits – since its founding in 2007. High Road is based in New York (www.highroadcap.com).
Charter Oak Equity invests in niche manufacturing, value-added distribution, and service companies ranging in size from $25 million to $150 million of enterprise value. Charter Oak was founded in 2006 and is based in Westport, CT (www.charteroak-equity.com).
PPG Industries (NYSE:PPG) is a global supplier of paints, coatings, specialty materials, and fiberglass. The company has annual revenues greater than $14 billion and is headquartered in Pittsburgh (www.ppg.com).
This transaction is expected to close in the third quarter 2017.
© 2017 Private Equity Professional | July 25, 2017
