Specialty Professional Products, a portfolio company of Calvert Street Capital Partners, has been acquired by KODA Distribution Group, a specialty chemical distributor and a portfolio company of the Audax Group.
Specialty Professional Products (SPP) and its affiliates, ADAPCO and Red River Specialties, are distributors of pesticide chemicals used in the forestry, industrial vegetation management, range and pasture, aquatics and mosquito control markets. The company is based in Sanford, FL (www.specialtyproproducts.com).
KODA Distribution Group is a specialty chemicals distribution company serving customers in the coatings, adhesives, sealants, and elastomers, as well as the construction, home/personal care, industrial and institutional cleaning, food, lubricants, inks, and plastics end markets. The company is based in Stamford, CT (www.kodadistribution.com).
During the course of its ownership Calvert Street initiated a number of operational changes to SPP. Shortly after closing the initial investment, Steve Burt was named CEO of the company. Mr. Burt led the development of the senior management team and sales force, an operational restructuring and investments in internal procedures and controls in order to build a high-margin specialty chemical distribution platform. The company subsequently completed and integrated two add-on acquisitions and made a strategic investment in its forestry segment in order to enhance its diversity and growth profile. Under Calvert Street’s ownership, SPP became a leader in four complementary market segments, and the company’s EBITDA more than tripled.
“SPP and the entire management team benefited from our relationship with Calvert Street and we thank them for all their support. In partnership with Calvert Street, SPP grew from a smaller, entrepreneurial business into a larger, sustainable, institutional organization,” said Steve Burt, CEO of SPP. “The sale to KODA is an excellent result for our investors, employees and the company overall. Our business has evolved significantly over the past several years and we are well positioned for a bright future with KODA.”
Calvert Street makes control investments in niche manufacturing and business services companies that have a minimum of $5 million of EBITDA and are located in the US or Canada. The firm is based in Baltimore (www.cscp.com).
“We thank Steve Burt, Trae Etre, Mike Cage and the entire SPP management team for being fine partners and for all their efforts that resulted in building the company so successfully over the last several years. They did an outstanding job. We wish them continued success with KODA,” said Josh Hall, Senior Partner with Calvert Street.
William Blair & Company acted as the exclusive financial advisor to Specialty Professional Products.
© 2013 PEPD • Private Equity’s Leading News Magazine • 10-16-13
