Through Valentus, Huron Capital plans to invest in regional specialty coatings producers to build a company with technically-advanced and environmentally-friendly reactive coating products serving a variety of end markets and geographies. According to Huron Capital, the US specialty coatings market is an $18 billion industry. Valentus will look to acquire companies with at least $20 million of annual revenues and a recurring revenue base with high customer retention. Product portfolios should also include innovative, environmentally-friendly, and reactive coatings technologies.
“Valentus marks the ninth specialty chemicals business that Huron Capital has funded over the past decade. Through our established buy-and-build model, the Valentus coatings platform follows our established history of investing in successful niche specialty chemical platforms, including Quest Specialty Chemicals and Bloomer Plastics. We are surrounding the Valentus initiative with a significant amount of intellectual and financial capital,” said Mike Beauregard, a Senior Partner at Huron Capital.
Huron Capital’s partner in this venture, Ray Chlodney, has spent over 30 years in the specialty chemical industry. He is the former President and COO of Spraylat Corp and has held executive roles at PPG Industries, Lilly Industries, Bayer Corp, and Benjamin Moore Paints. His coatings experience includes working as a senior chemist and technical director, as well as director of strategic planning and business development. He has managed international expansion and acquisition integration, and established partnerships with research institutions to develop next generation coatings technologies.
“We are excited to partner with a proven operator in Ray Chlodney,” said Jim Mahoney, a Partner at Huron Capital. “The specialty coatings market is highly fragmented, and we expect Ray’s expertise and connections within the industry will be instrumental in identifying, investing in, and growing businesses with market-leading technologies.”
“It is great to work with Huron Capital,” said Mr. Chlodney. “Since its founding, Huron Capital has a history of partnering with executives in order to create value through buy-and-build strategies. The specialty coatings market is a perfect fit for our strategy, with a large number of private, family-owned businesses that could benefit from additional capital and operational expertise.”
Huron Capital Partners invests up to $70 million per transaction in middle market companies that have revenues up to $200 million and EBITDAs of $5 million or more. Sectors of interest include education & training, healthcare, specialty chemicals, specialty packaging, consumer products, home decor, business services, industrial manufacturing, food & beverage, and marketing services. The firm was founded in 1999 and currently manages over $1.1 billion in committed equity through four private equity funds. Huron Capital Partners has offices in Detroit and Toronto (www.huroncapital.com).
© 2014 PEPD • Private Equity’s Leading News Magazine • 5-12-14