Olympus Hits Big Multiple On Latest Exit

Olympus Partners has agreed to sell Ennis-Flint, a maker of pavement markings and traffic safety products, to publicly traded PPG for $1.15 billion.

Ennis-Flint makes and sells durable and retro-reflective marking products – including traffic paint and raised plastic pavement markers – used in the construction, maintenance and repair of highways, roads, and airports. The Greensboro, North Carolina-headquartered company has 24 manufacturing facilities located in the United States, Canada, Australia, South America and Europe.

Ennis-Flint was formed by Brazos Private Equity in March 2012 through the merger of Ennis Paint (acquired by Brazos in 2007) and Flint Trading (acquired by Brazos in 2012). Olympus acquired Ennis-Flint in June 2016 from Brazos. Under Olympus’ ownership, Ennis-Flint closed six add-on acquisitions and today, led by CEO Matt Soule, employs approximately 1,000 people with annual revenues of $600 million and mid-teen percentage EBITDA margins. Assuming a 15% EBITDA margin, the purchase price multiple for this transaction is 12.8x.

“Ennis-Flint has thoroughly enjoyed having Olympus as our financial sponsor, strategic sounding board, and trusted advisor for the past four years,” said Mr. Soule. “Their support for growth both through internal capital projects as well as acquisitions has been critical to our success.”

The Olympus transaction team included Dave Cardenas, Matt Boyd, Sam Greenberg and Matt Bujor. “We are very happy for the Ennis-Flint organization to have found a logical home with PPG and are deeply appreciative of the partnership on both a personal and professional level,” said Mr. Cardenas, a partner at Olympus. “It is a privilege to work with such an outstanding management team. We look forward to seeing what our friends at Ennis-Flint can do with the support of PPG behind them.”

Olympus invests in a range of industries but has a specific interest in business services, consumer products, healthcare services, financial services, industrial services and manufacturing. In December 2017, the firm held a final closing of its seventh institutional private equity fund, Olympus Growth Fund VII LP, with an oversubscribed $3 billion of capital commitments. The firm was founded in 1988 and is based in Stamford, Connecticut.

Pittsburgh-headquartered PPG (NYSE: PPG) is a global supplier of paints, coatings, and specialty materials with annual revenues of more than $15 billion.

“The acquisition of Ennis-Flint will further expand our product offering and opportunities in rapidly developing and high-growth mobility technology solutions,” said Michael McGarry, PPG chairman and chief executive officer. “The company is well known for its high-quality products, technical expertise and innovative systems.”

The financial advisor to Olympus was investment bank Harris Williams with Managing Director Patrick McNulty and Director John Lautemann leading its transaction team.

© 2020 Private Equity Professional | December 1, 2020

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