Audax Private Equity has established the foundation of a platform in the specialty coatings and adhesives markets through the acquisition of California Products Corporation (“CPC”), together with its existing investment in Nicoat, a formulator of specialty packaging and printing coatings, in which Audax invested in March 2015. CPC expands the platform into the architectural, sports surfaces, and specialty construction coatings segments. Audax plans to rapidly grow the platform through acquisitions in both new and existing end markets, products lines, and technologies as well as maintaining a strong organic focus.
California Products, founded in 1926 and based in Andover, MA, is a leading provider of branded, premium architectural interior and exterior paints and stains, tennis court and other sports surfaces coatings systems, and mold and abatement remediation coatings. CPC and Nicoat will continue to operate as standalone business units of the combined platform, leveraging benefits through raw material purchasing, technological collaboration, and shared services. Audax acquired CPC from Delos Capital. Delos will continue as a shareholder in the combined platform.
The establishment of the new platform builds upon Audax’ experience within the coatings and broader specialty chemicals industry, including its investments in ColorMatrix, KODA Distribution Group, Quest Specialty Chemicals, and Gabriel Performance Products.
Steven McMenamin, *President, California Products Corporation, said “Our entire organization is excited to partner with Audax and Nicoat in our vision to create a specialty formulated products platform, leveraging Audax’ experience in building companies through acquisition, including within the specialty chemicals sector, with our leading brands, scalable operations, and talented leadership and employees.”
Chuck Turnbull, CEO, Nicoat, said “We are excited to have CPC join us in the vision of creating a specialty platform. Our team is eager to work with Steven and the rest of the CPC team, and we look forward to the opportunities ahead to continue expanding into additional products and end markets.”
Don Bramley, Managing Director, Audax Private Equity, said “We are thrilled to partner with Steven and his team, who have built CPC into a market leading platform in its core end markets through organic growth and several acquisitions. We look forward to working together with him as well as Pete Longo, who served as CPC’s CEO and has now joined the board of the combined platform, to accelerate growth organically and through acquisition and build upon the successes they have achieved.”
Grace Matthews advised California Products Corporation. Goodwin Proctor, LLP served as counsel to CPC. Kirkland & Ellis LLP served as counsel to Nicoat and Audax.