Huron Capital’s Valentus Specialty Chemicals Platform Investment Completes Fifth Acquisition
ExecFactor® Coatings Initiative Acquires US Coatings, Inc.
Detroit, MI – January 5, 2018 – Huron Capital today announced its ExecFactor® platform, Valentus Specialty Chemicals (“Valentus”), has acquired St. Louis-based US Coatings, Inc. (“US Coatings”). This represents the fifth acquisition for Valentus, which Huron Capital formed in partnership with CEO Ray Chlodney to pursue a buy-and-build investment strategy in the protective coatings sector.
Founded in 2000, US Coatings is a provider of high performance protective maintenance coatings for industrial, petrochemical, and oil and gas facility maintenance applications. The company was purchased in 2013 by Mike Reed, Don Thomas, and Larry LeSeure, who are now partnering with Valentus to leverage the infrastructure, technology and manufacturing capacity Valentus has assembled.
“We are excited to be part of the Valentus platform,” said Reed. “We see this as mutually beneficial for all involved. Valentus will have access to the US Coatings research and development lab to help with its new product development. US Coatings will also be able to expand distribution of our existing products with access to the Valentus network.”
“The acquisition of US Coatings is another important step in the development of Valentus,” said Chlodney. “The company has expertise in formulating and technical service as well as a great customer base, which should help broaden Valentus’ product offerings and expand our geographic reach.”
“With the introduction of the Valentus ‘Advanced Protective Maintenance Coatings System’ in collaboration with Eastman Chemical, we believe the Valentus-US Coatings partnership will provide exceptional technology to the marketplace,” said Bob Taylor, Valentus Board Member and Huron Capital Operating Partner.
Mike Beauregard, Senior Partner at Huron Capital, added, “Valentus has now completed five acquisitions since December 2015, which is a credit to the resourcefulness of Ray, Operating Partner Bob Taylor, and the entire team. Valentus is a great example of Huron Capital’s ExecFactor® buy-and-build model, where the firm aligns with a seasoned executive and develops a strategic market entry plan to identify and acquire a sustainable platform company. We plan to continue looking for opportunities to further expand the Valentus platform.”
About Huron Capital
Based in Detroit, Huron Capital is an operationally-focused private equity firm with a long history of growing lower middle-market companies through our proprietary ExecFactor® buy-and-build investment model. We prefer complex situations where we can help companies reach their full potential by combining our operational approach, substantial capital base, and transaction experience with seasoned operating executives. Founded in 1999, Huron Capital has raised over $1.8 billion in capital through six committed private equity funds and invested in over 140 companies, and our portfolio companies have employed over 11,000 people throughout North America. The Huron Capital buy-and-build investment model includes equity recapitalizations, family succession transactions, market-entry strategies, corporate carve-outs, and management buyouts of companies having revenues up to $200 million. Huron Capital targets both control and non-control equity stakes in fundamentally-sound companies that can benefit from the firm’s operational approach to creating value. Huron Capital’s sector focus includes business services, consumer products & services and specialty industrials. For more information, please visit www.huroncapital.com.
About Valentus Specialty Chemicals
Valentus Specialty Chemicals is a holding company focused on partnering with businesses with superior coatings technologies that can be applied in a broad range of niche end markets. Through strategic partnerships with market-leading businesses, Valentus seeks to build a specialty coatings company with a wide range of technological capabilities and a broad geographic reach. Valentus is focused on serving customers that are not targeted or effectively serviced by the industry’s largest players.