Century Park Loves Specialty Chemicals

Century Park Loves Specialty Chemicals

The buy of NCP follows Century Park’s August 2021 sale of Covercraft, a maker of vehicle protection products, that gave the firm a 29x return on its invested equity

NCP develops and manufactures performance coatings that are used in military, industrial, commercial, and forestry applications

SOURCE: NCP Coatings

Century Park Capital Partners has acquired specialty chemicals maker NCP Coatings. The acquisition of NCP is the firm’s third platform and eleventh overall investment in the specialty chemicals sector.

NCP Coatings develops and manufactures performance coatings that are used in military, industrial, commercial, and forestry applications. The company’s products include anti-corrosive epoxy systems, high gloss urethane systems, market-leading polysiloxanes, specialty systems for forestry customers, and a range of MIL-SPEC (military specification) approved military coatings.

NCP Coatings was founded in 1948 by C.M. “Marvin” Hannewyk II to provide paints and coatings for military vehicles manufactured by South Bend-based Studebaker Automobile Company. Today, NCP is under third-generation family ownership – including by brothers Ben and Nat Hannewyk (grandchildren of the founder) – and is led by President and Chief Operating Officer Charlton Keultjes.

NCP is headquartered in the western Michigan city of Niles – the company’s founding name was Niles Chemical Paint – with an additional warehousing facility in nearby Mishawaka, Indiana.

“We are excited to partner with Century Park as NCP moves into its next phase of growth. Century Park’s team and their core values align well with the Hannewyk family ownership as well as NCP’s vision for future growth,” said Mr. Keultjes. “Century Park’s track record of success in the specialty chemical industry is a perfect fit as we seek to invest in expanding NCP by adding new talent, new capabilities, and combining our strengths with other performance coatings businesses through strategic acquisitions.”

Century Park’s acquisition of NCP is the first transaction under its Century Leaders Program (CLP), a new executive-led, buy-and-build acquisition strategy. The CLP teams with an operating partner or C-level executive in a targeted sector and dedicates both a deal team and search resources to the defined investment sector. Doug Holmberg, an executive in the CLP covering the specialty chemicals sector, sourced the NCP transaction alongside Century Park and he will join NCP as a board member and as CEO. Mr. Holmberg has more than 25 years in the specialty coatings sector. Most recently, he was the business director of the automotive and specialty coatings segment for the Americas region at paints and performance coatings giant Akzo Nobel.

“For the last 20 years, our focus has always been partnering with proven industry executives to invest in family and founder-owned businesses,” said Martin Sarafa, the managing partner of Century Park. “With the Century Leaders Program, we have formalized our approach to partnering with executives like Doug to develop a thesis and strategy in a given sector ahead of an acquisition. This approach allows us to accelerate the execution of our value creation plan and provides an exciting opportunity for entrepreneurially-minded executives looking for a collaborative private equity partner.”

“With a strong internal research and development team and a 70+ year track record of delivering high-quality products, NCP has built an excellent reputation with its customers and in the markets it serves,” said Tony Trevino, a principal with Century Park. “We are thrilled to work alongside management and to support NCP as it expands into new markets and reaches new customers.”

Century Park invests from $10 million to $40 million in companies that have revenues of $20 million to $100 million and EBITDA of $3 million to $15 million. Sectors of interest include chemicals, medical products and services, business services, engineered products, and consumer products.

In April 2021, Century Park acquired CJ Pony Parts, a Pennsylvania-based e-commerce seller of restoration and performance parts to auto enthusiasts. CJ Pony specializes in parts for classic Mustangs – those manufactured from 1964 to 1973 – and, with more than 65,000 SKUs, has a leading market share of this specialized aftermarket segment.

A recent exit by Century Park was the August 2021 sale of Covercraft Industries to Audax Private Equity. Century Park acquired Covercraft, an Oklahoma-headquartered branded manufacturer of vehicle protection products including automotive covers, seat covers, front end masks, dashboard covers, window sunscreens, RV covers, and boat covers.

During its ownership term, Century Park and the team at Covercraft grew shareholder value through organic growth, five add-on acquisitions, and the establishment in 2016 of a direct-to-consumer website. According to a source familiar with this transaction, Century Park realized a return of 29x its invested capital on Covercraft.

Century Park is headquartered near Los Angeles in El Segundo, California.

© 2022 Private Equity Professional | January 21, 2022

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