U-C Coatings, a portfolio company of High Road Capital Partners, has acquired the assets of the stains and industrial coatings business of Eco Chemical.
Seattle-based Eco Chemical is a manufacturer of water-based stains and coatings used on pressure-treated wood and in the manufacturing of wood products including fencing and decks.
Eco Chemical was founded in 1991 by CEO Mark Cheirrett and VP Finance Peg Cheirrett. The two founders have invested in this transaction in partnership with High Road.
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 in January 2018. The buy of Eco Chemical is the second add-on acquisition for the company and follows the August 2018 acquisition of Contechem, a St. Johns, OR-based manufacturer of wood protection products for freshly cut lumber and logs.
U-C Coatings’ products include ANCHORSEAL, used to prevent logs and lumber from prematurely drying and cracking; GEMPAINT, a lumber tagging paint used to differentiate lumber bundles; SEAL-ONCE, a waterproofer used to protect wood, concrete and masonry; and CONTECHEM, an anti-stain product that inhibits mold growth and discoloration on wood and lumber. U-C Coatings, led by CEO Eric Degenfelder, is headquartered in Buffalo (www.uccoatings.com).
“With the addition of Eco Chemical’s innovative products and customization capabilities, U-C Coatings is well-positioned for accelerated growth,” said Mr. Degenfelder. “We are now able to serve customers as a complete provider of stains and coatings in both the hardwood and softwood markets.”
“The acquisition of Eco Chemical deepens U-C Coatings’ position in the softwood market, adds the pressure-treating channel, and broadens U-C Coatings’ product offerings by introducing stains and coatings that capitalize on trends such as vintage wood,” said Jeff Goodrich, a partner at High Road. “It also expands U-C Coatings’ geographic presence on the West Coast and gives customers on the East Coast access to new products for the pressure-treated lumber market.”
Mr. Goodrich led this transaction for High Road and was assisted by Operating Partner Jeff Leone, Vice President Eojin Lee, and Associate Anthony Tripodoro.
High Road invests in manufacturing, service, or value-added distribution businesses with revenues of $10 million to $100 million and EBITDA of $3 million to $10 million. The New York-based firm has completed 57 transactions – 20 platform investments, 30 add-on acquisitions and 7 exits – since its founding in 2007.
Chicago-based Madison Capital provided financing to support the buy of Eco Chemical by U-C Coatings.
© 2019 Private Equity Professional | September 19, 2019