Audax Private Equity has acquired Krayden, a technical distributor of specialty materials, from Quad-C Management.
Krayden’s products include sealants, adhesives, coatings, encapsulates, release agents, solder, solder chemicals, supplies, and dispensing equipment used by original equipment manufacturers (OEMs) in the aerospace and defense, electronics, and industrial OEM segments.
Denver-headquartered Krayden has locations in the United States, Canada, Mexico, Brazil, Singapore, Malaysia, the Philippines, and Europe.
Quad-C acquired Krayden in January 2017. “Since 2017, the partnership we established with Quad-C was built on a shared vision and common goal to achieve the next phase of growth,” said Wayne Wagner, the chief executive officer of Krayden. “Quad-C’s industry knowledge and corporate development approach allowed our teams to quickly align and work hand in hand to expand our capabilities and scale the platform. We have sincerely valued the partnership and collaboration with the Quad-C team and thank them for their support.”
“We are fortunate to have partnered with Wayne and the entire Krayden team over the last six years,” said Thad Jones, a partner at Quad-C. “Our shared value creation plan, which management executed skillfully, included expanding Krayden’s global footprint, adding select suppliers and product lines, and executing on a strategic acquisition playbook, all while maintaining the entrepreneurial culture of the company.”
Audax has experience in the specialty distribution and chemicals space with previous investments in Gabriel Performance Products, a specialty chemicals manufacturer sold to Huntsman in 2021, and KODA Distribution, a specialty chemicals distributor sold to Azelis Group in 2015.
The firm also has experience in distribution with investments in EIS, a Georgia-based distributor of process materials, production supplies, specialty wire and cable, and fabricated parts used in the electrical OEM, motor, transformer, generator repair and assembly sectors (2019); and GCG, an Illinois-based distributor of connectivity and automation products (2021).
“Audax Private Equity stood out as a preferred investor due to the firm’s deep experience in the distribution and specialty chemicals space as well as its proven buy-and-build approach to catalyze growth,” added Mr. Wagner. “We’re excited about this next phase of growth and will leverage the resources available through Audax to accelerate our expansion efforts.”
“Krayden checks the most important criteria for us,” said Don Bramley, a senior managing director at Audax. “The company is led by a talented management team with long-term supplier and customer relationships, which underscore Krayden’s value proposition as a technical distribution partner able to help customers solve challenges.”
Audax Private Equity invests in middle-market companies that have from $8 million to $50 million in EBITDA and enterprise values of $50 million to $400 million. The firm has invested over $9 billion in 160 platforms and over 1,200 add-on companies. Sectors of interest include business and consumer services; energy; healthcare; technology, media, and telecom; and industrials including chemicals, infrastructure, and building materials. Audax, with offices in Boston, New York, and San Francisco, is currently investing out of its $3.5 billion, sixth private equity fund.
“Krayden has an established track record of buying and successfully integrating add-on acquisitions,” said Andrew Oliver, a managing director at Audax. “The strength of its relationships and diverse customer base positions Krayden as an acquirer of choice as management seeks to further scale the business and expand its product set.”
Quad-C invests in companies with enterprise values of $50 million to $400 million. Sectors of interest include specialty distribution, industrials, transportation and logistics, business and consumer services, healthcare, food and beverage, and consumer products. Quad-C was founded in 1989 and is headquartered in Charlottesville, Virginia.
Evercore Partners was the financial advisor to Krayden and Quad-C Management.
© 2023 Private Equity Professional | April 11, 2023
