Milwaukee, WI (October 27, 2015) – Grace Matthews, Inc. and California Products Corporation (“CPC”) today announced that CPC has been acquired by Audax Private Equity (“Audax”). Audax acquired CPC from Delos Capital (“Delos”). Grace Matthews advised CPC and Delos on this transaction. Financial terms were not disclosed.
Based in Andover, MA, CPC is a leading provider of branded, premium architectural interior and exterior paints and stains, tennis court and other sports surfaces coatings systems, and specialty abatement products. Delos acquired CPC in 2013 and began executing a robust growth strategy, which included several acquisitions that expanded the geographic footprint of the business and added complementary products to CPC’s portfolio.
Audax’ acquisition of CPC follows its March 2015 investment in Nicoat, a formulator of specialty packaging and printing coatings. CPC and Nicoat represent the formation of a new platform in the specialty coatings and adhesives markets that Audax plans to grow organically and through acquisition. Delos will continue as a shareholder in the combined platform.
“Delos Capital was fortunate to have backed the right company and management team in our fund’s first investment,” said Matt Constantino, Founder of Delos Capital. “Our investment in California Products yielded a great return for our institutional shareholders, and we are excited about our rolled equity going forward.”
Steven McMenamin, President of CPC, said, “Delos’ support over the last several years was essential in CPC’s expansion into a variety of complementary products, brands, and geographies. We are excited to partner with Audax and Nicoat to build upon this momentum and create a world-class specialty formulated products platform. We look forward to opportunities for continued growth in both new and existing products and end markets.”
Andy Hinz, Director at Grace Matthews, said, “The partnership presents an exciting opportunity for everybody involved. Audax has a strong track record investing within the coatings and broader specialty chemicals industry, and has the experience and resources to continue growing the combined platform. We are excited for the opportunities that await Steven and the entire team at CPC.”
Goodwin Proctor, LLP served as counsel to CPC. Kirkland & Ellis LLP served as counsel to Nicoat and Audax.
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About California Products Corporation
Headquartered in Andover, Massachusetts, California Products is a leading manufacturer of California Paints® and Storm System® architectural coatings, including 2010® and Fres-Coat® Velvet Flat, constantly rated the #1 exterior paint by a leading consumer magazine. Its Sports Surfaces Division is the world’s largest producer of acrylic athletic surfacing materials, primarily for tennis and running tracks. Fiberlock Technologies® offers the broadest and most comprehensive product lines for mold remediation as well as lead and asbestos encapsulation. For more information, visit www.calprocorp.com.
About Delos Capital, LLC
Delos Capital, LLC, founded in 2013, invests opportunistically in North America-based lower middle- market companies in the Chemicals, Packaging, Industrials, Consumer and Services sectors. Delos has a history of completing complex transactions in these industries and employs a value-oriented sector- driven approach coupled with leveraging trends in the interrelated credit and equity markets. www.deloscap.com
About Audax Group
Audax Group is an alternative asset management firm specializing in investments in middle market companies. With offices in Boston, New York and Menlo Park, Audax has over $6 billion in assets under management in its Private Equity, Mezzanine, and Senior Debt businesses. For more information visit the Audax Group website www.audaxgroup.com.
About Grace Matthews, Inc.
Grace Matthews, Inc., a Milwaukee-based investment bank, provides merger, acquisition and corporate finance advisory services to private and public companies. Grace Matthews’ chemical practice is known globally for completing successful chemical industry transactions dating back to the early 1990s. Grace Matthews’ principals have completed over 100 transactions involving global corporations such as Akzo Nobel, 3M, DuPont, Sherwin-Williams, PPG Industries, Ashland, Ceradyne, DSM, ICI, Borregaard, Air Products, Landec Corporation, The Home Depot, Hexion Specialty Chemicals, Atofina Chemicals, Brush Engineered Materials, Becker Industrial Coatings, RPM International, Courtaulds, Domino Sugar, and Chr. Hansen Laboratories. For more detailed information on Grace Matthews, Inc., visit www.gracematthews.com.
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Grace Matthews’ goal is to help business owners, corporate managers, and other stakeholders unlock the value of their businesses by employing strategies that maximize value and achieve other business objectives.