High Road Closes 50th Transaction

U-C Coatings, a portfolio company of High Road Capital Partners, has acquired Contechem. This acquisition marks High Road’s 50th transaction since its founding in 2007.

In January 2018, High Road acquired U-C Coatings, a manufacturer and distributor of specialty coatings and sealants used in the North American wood and lumber markets, from Argosy Private Equity and Sidereal Capital Group.

U-C Coatings’ wood protection products and end paints are used to conserve and protect hardwood logs and lumber. The company’s products includes ANCHORSEAL which is used to prevent logs and lumber from prematurely drying and cracking; GEMPAINT lumber tagging paints are used to differentiate lumber bundles; and SEAL-ONCE water-proofers create a protective water barrier within wood, concrete and masonry. The company was founded in 1971 and is headquartered in Buffalo, NY (www.uccoatings.com).

Like U-C Coatings, Contechem is also a manufacturer of wood protection products for freshly cut lumber and logs. The company’s Britewood anti-stain products inhibit mold growth and discoloration on wood and lumber, and the company’s proprietary application equipment is used to reduce product waste and improve worker safety. All of Contechem’s manufacturing is carried out in compliance with environmental regulations and the company operates on a zero-discharge basis to prevent release of toxic or hazardous materials. Contechem, led by President Kip Anderson, was founded in 1985 and is headquartered in a 21,000 square foot facility in the Portland suburb of St. Johns, OR (www.contechem.com).

Mr. Anderson and his brother, Steve Anderson, will continue to lead Contechem post-closing. The two invested in the transaction alongside High Road and U-C management. Both companies will continue operations at their manufacturing facilities in Buffalo and Portland.

“Contechem has a superior line of products and provides outstanding levels of customer support,” said Tom Johel, CEO of U-C Coatings. “Its ability to develop and manufacture custom blends for a mill’s wood and climate conditions makes it a natural partner for U-C Coatings, and both companies’ products provide exceptional cost savings and return on investment. With tight margins in the lumber industry, we believe we can have a positive impact on our customers’ bottom lines.”

“Joining Contechem’s innovative sapstain products with U-C Coatings’ industry-leading wood sealants and end paints provides an ideal cross-selling opportunity and one-stop shop package to customers,” said Jeffrey Goodrich, a Partner at High Road. “We continue to seek strategic opportunities to build the U-C platform.”

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.  The firm has completed 50 transactions – 18 platform investments, 25 add-on acquisitions and 7 exits – since its founding in 2007.  High Road is based in New York (www.highroadcap.com).

Mr. Goodrich led the transaction for High Road and was assisted by Eojin Lee, Vice President; James Karle, Senior Associate; and Marc Rosenberg, Associate.

Madison Capital provided financing for this transaction.

© 2018 Private Equity Professional | September 13, 2018

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