Mergers & Acquisitions

September 6, 2022

Foam Fabrication Rollup Started

Tecum stakes foam fabricator in Derry

Keystone Foam's plant is in Derry, Westmoreland County.

By Patty Tascarella  –  Senior Reporter, Pittsburgh Business Times Sep 6, 2022

One of Pittsburgh’s biggest private equity firms has invested in a 39-year-old firm that fabricates custom foam products for multiple industries.

Tecum Capital of Wexford teamed with Valley Ridge Investment Partners to acquire the former Keystone Foam Corp., based in Derry. Tecum and Valley Ridge partnered with Centerfield Capital Partners and Petra Capital Partners. Financial terms were not disclosed but Tecum said its investment was in the middle of its target range of $8 million to $25 million.

The investors’ stake augments the Quinn family, Keystone’s founders and senior management team, in pursuing strategic growth opportunities.

Now known as Keystone Foam PA LLC, the company does not disclose sales. It employs 120 and is led by CEO Brian Quinn and COO Gerald “Jeep” Quinn, sons of the founder. The new money is growth capital for expansion to meet customer demand and to increase product offerings. Keystone’s customized foam solutions serve industry sectors including medical, packaging and furniture. It uses conventional polyurethane, polyethylene, viscoelastic foams, latex and other components

“The infusion of capital will allow us to continue our family’s focus of re-investment into our valued people, our equipment and facilities,” Jeep Quinn said in a prepared statement. “With our third generation of Quinn family members entering the business in leadership roles, the investment of capital creates a wonderful opportunity to build upon our heritage here in western Pennsylvania.”

There are opportunities for add-ons, Stephen Gurgovits Jr., Tecum managing partner, said.

“But for now, there is a nice organic growth opportunity,” he said.

The deal was the seventh platform investment out of Tecum’s $305 million SBIC fund and marked its second local deal. In February, Tecum led a syndicate of investors buying Automotive Systems Warehouse LLC, based in Hampton Township, in an eight-figure transaction.

But it also did transactions in the second half of 2021 from its prior fund, investing in JD Palatine LLC in Wexford and in DelGrosso Foods, near Altoona.

”We always prefer deals closer to home, but I believe our successful track record of working directly with family/founder owned businesses is a primary reason we get local opportunities,” Gurgovits said.

Tecum expects to finish its first full year of operations for the newest SBIC fund, its third, with close to $100 million invested. SBIC, short for Small Business Investment Company, means the U.S. Small Business Administration is matching the money raised up to the SBA’s cap of $175 million. Some 21 banks are investors in the fund.

“We are excited about the excellent start and pace of investment in Fund III so far,” Gurgovits said.

Tecum Capital Partners is Pittsburgh’s fourth-largest private equity firm according to capital under management, which is $750 million. The $28 million it invested in 2021 in local companies was the highest disclosed amount of any private equity or venture capital firm based in the 10-county Pittsburgh metro, according to The List published by the Business Times on April 22. Separate from the SBIC fund, Tecum is also doing deals with family offices.

Tecum’s team for the Keystone deal consisted of Matt Harnett, Dave Bonvenuto, Paul Oris and Carter Henderson. Clearfield-based CNB Bank provided senior debt financing. McGuireWoods and Jones Day provided legal services to the investor group and CohnReznick LLP provided accounting, tax, and quality of earnings advice. Dinan Capital Advisors represented Keystone as its exclusive financial advisor and Williams Coulson provided legal counsel.

https://www.bizjournals.com/pittsburgh/news/2022/09/06/tecum-stakes-foam-firm-derry.html

September 6, 2022

Foam Fabrication Rollup Started

Tecum stakes foam fabricator in Derry

Keystone Foam's plant is in Derry, Westmoreland County.

By Patty Tascarella  –  Senior Reporter, Pittsburgh Business Times Sep 6, 2022

One of Pittsburgh’s biggest private equity firms has invested in a 39-year-old firm that fabricates custom foam products for multiple industries.

Tecum Capital of Wexford teamed with Valley Ridge Investment Partners to acquire the former Keystone Foam Corp., based in Derry. Tecum and Valley Ridge partnered with Centerfield Capital Partners and Petra Capital Partners. Financial terms were not disclosed but Tecum said its investment was in the middle of its target range of $8 million to $25 million.

The investors’ stake augments the Quinn family, Keystone’s founders and senior management team, in pursuing strategic growth opportunities.

Now known as Keystone Foam PA LLC, the company does not disclose sales. It employs 120 and is led by CEO Brian Quinn and COO Gerald “Jeep” Quinn, sons of the founder. The new money is growth capital for expansion to meet customer demand and to increase product offerings. Keystone’s customized foam solutions serve industry sectors including medical, packaging and furniture. It uses conventional polyurethane, polyethylene, viscoelastic foams, latex and other components

“The infusion of capital will allow us to continue our family’s focus of re-investment into our valued people, our equipment and facilities,” Jeep Quinn said in a prepared statement. “With our third generation of Quinn family members entering the business in leadership roles, the investment of capital creates a wonderful opportunity to build upon our heritage here in western Pennsylvania.”

There are opportunities for add-ons, Stephen Gurgovits Jr., Tecum managing partner, said.

“But for now, there is a nice organic growth opportunity,” he said.

The deal was the seventh platform investment out of Tecum’s $305 million SBIC fund and marked its second local deal. In February, Tecum led a syndicate of investors buying Automotive Systems Warehouse LLC, based in Hampton Township, in an eight-figure transaction.

But it also did transactions in the second half of 2021 from its prior fund, investing in JD Palatine LLC in Wexford and in DelGrosso Foods, near Altoona.

”We always prefer deals closer to home, but I believe our successful track record of working directly with family/founder owned businesses is a primary reason we get local opportunities,” Gurgovits said.

Tecum expects to finish its first full year of operations for the newest SBIC fund, its third, with close to $100 million invested. SBIC, short for Small Business Investment Company, means the U.S. Small Business Administration is matching the money raised up to the SBA’s cap of $175 million. Some 21 banks are investors in the fund.

“We are excited about the excellent start and pace of investment in Fund III so far,” Gurgovits said.

Tecum Capital Partners is Pittsburgh’s fourth-largest private equity firm according to capital under management, which is $750 million. The $28 million it invested in 2021 in local companies was the highest disclosed amount of any private equity or venture capital firm based in the 10-county Pittsburgh metro, according to The List published by the Business Times on April 22. Separate from the SBIC fund, Tecum is also doing deals with family offices.

Tecum’s team for the Keystone deal consisted of Matt Harnett, Dave Bonvenuto, Paul Oris and Carter Henderson. Clearfield-based CNB Bank provided senior debt financing. McGuireWoods and Jones Day provided legal services to the investor group and CohnReznick LLP provided accounting, tax, and quality of earnings advice. Dinan Capital Advisors represented Keystone as its exclusive financial advisor and Williams Coulson provided legal counsel.

https://www.bizjournals.com/pittsburgh/news/2022/09/06/tecum-stakes-foam-firm-derry.html

September 6, 2022

PurEpoxy is Sold


FOR IMMEDIATE RELEASE GRACE MATTHEWS ADVISES PUREPOXY ON ITS SALE TO A.P. NONWEILER

MILWAUKEE (September 6, 2022) – Vortex Coatings Inc. (“PurEpoxy”), a leading North American concrete coatings manufacturer, and Groupe Distribution Inc. (“Ice Epoxy”), a casting resins provider, have been acquired by A.P. Nonweiler, Co. (“APN”), a manufacturer of specialty coatings and a portfolio company of Renovo Capital, LLC (“Renovo”). Grace Matthews advised PurEpoxy and Ice Epoxy on the transaction.

PurEpoxy formulates and manufactures a focused product line of protective and decorative concrete coatings systems for the residential and commercial markets, selling primarily through a network of distribution partners globally. Ice Epoxy produces a suite of DIY resins for hobby and craft projects.

Erik Gravel, CEO of PurEpoxy, commented, “APN is the perfect partner to enhance our mission to provide the best coatings systems at competitive prices to our customers—we can now leverage a complementary product portfolio, additional manufacturing capacity across two sites to meet the growing needs of our customers, and a more robust supply chain.”

ABOUT PUREPOXY PurEpoxy is a leading North American manufacturer of high-quality liquid polymer products for commercial, industrial and residential projects. Their products are used to make decorative coatings, concrete repair compounds, chips and quartz floor systems. PurEpoxy polyaspartic and epoxy concrete coating systems offer consistency while providing long-lasting durable finishes. For more information visit www.purepoxy.com.

ABOUT A.P. NONWEILER Founded in 1929, A.P. Nonweiler is an Oshkosh, Wisconsin-based coatings manufacturer specializing in difficult-to-produce, specialty and small batch industrial coatings. APN operates out of a 261,000 square foot manufacturing facility, to produce a comprehensive portfolio of industrial coatings products serving a variety of end markets and applications. For more information visit www.apnonweiler.com.

ABOUT RENOVO Renovo Capital is a Dallas, TX – based lower middle market private equity firm comprised of seasoned operating and investing professionals. Renovo makes control investments in technical businesses that have the potential to generate meaningful value through operational improvements and strategic initiatives. Since its founding in 2009, Renovo has completed over 30 transactions and raised over $400 million of committed capital. For more information, please visit www.renovocapital.com.
______________________________________________
ABOUT GRACE MATTHEWS Grace Matthews, Inc., a Milwaukee-based investment bank, provides merger, acquisition and corporate finance advisory services to private and public companies across the chemical and materials value chain. Over the past two decades, Grace Matthews has successfully completed over 200 transactions on behalf of clients ranging from private, middle-market companies to large, foreign or U.S.-based multi-nationals. For more detailed information on Grace Matthews, visit www.gracematthews.com

September 6, 2022

PurEpoxy is Sold


FOR IMMEDIATE RELEASE GRACE MATTHEWS ADVISES PUREPOXY ON ITS SALE TO A.P. NONWEILER

MILWAUKEE (September 6, 2022) – Vortex Coatings Inc. (“PurEpoxy”), a leading North American concrete coatings manufacturer, and Groupe Distribution Inc. (“Ice Epoxy”), a casting resins provider, have been acquired by A.P. Nonweiler, Co. (“APN”), a manufacturer of specialty coatings and a portfolio company of Renovo Capital, LLC (“Renovo”). Grace Matthews advised PurEpoxy and Ice Epoxy on the transaction.

PurEpoxy formulates and manufactures a focused product line of protective and decorative concrete coatings systems for the residential and commercial markets, selling primarily through a network of distribution partners globally. Ice Epoxy produces a suite of DIY resins for hobby and craft projects.

Erik Gravel, CEO of PurEpoxy, commented, “APN is the perfect partner to enhance our mission to provide the best coatings systems at competitive prices to our customers—we can now leverage a complementary product portfolio, additional manufacturing capacity across two sites to meet the growing needs of our customers, and a more robust supply chain.”

ABOUT PUREPOXY PurEpoxy is a leading North American manufacturer of high-quality liquid polymer products for commercial, industrial and residential projects. Their products are used to make decorative coatings, concrete repair compounds, chips and quartz floor systems. PurEpoxy polyaspartic and epoxy concrete coating systems offer consistency while providing long-lasting durable finishes. For more information visit www.purepoxy.com.

ABOUT A.P. NONWEILER Founded in 1929, A.P. Nonweiler is an Oshkosh, Wisconsin-based coatings manufacturer specializing in difficult-to-produce, specialty and small batch industrial coatings. APN operates out of a 261,000 square foot manufacturing facility, to produce a comprehensive portfolio of industrial coatings products serving a variety of end markets and applications. For more information visit www.apnonweiler.com.

ABOUT RENOVO Renovo Capital is a Dallas, TX – based lower middle market private equity firm comprised of seasoned operating and investing professionals. Renovo makes control investments in technical businesses that have the potential to generate meaningful value through operational improvements and strategic initiatives. Since its founding in 2009, Renovo has completed over 30 transactions and raised over $400 million of committed capital. For more information, please visit www.renovocapital.com.
______________________________________________
ABOUT GRACE MATTHEWS Grace Matthews, Inc., a Milwaukee-based investment bank, provides merger, acquisition and corporate finance advisory services to private and public companies across the chemical and materials value chain. Over the past two decades, Grace Matthews has successfully completed over 200 transactions on behalf of clients ranging from private, middle-market companies to large, foreign or U.S.-based multi-nationals. For more detailed information on Grace Matthews, visit www.gracematthews.com

August 26, 2022

Recticel Results

Recticel First Half-Year 2022 Results

Regulated information, Brussels, 26/08/2022 — 06:59 CET, 26.08.2022

  • Net sales increase from EUR 229.7 million to EUR 274.3 million (+19.4%), of which +15.6% organic growth, +0.6% currency effect,  EUR 38.5 million contribution from Trimo, and a EUR 31.0 million drop in sales of chemicals to the divested Automotive companies
  • Adjusted EBITDA: from EUR 22.4 million to EUR 29.2 million (+30.3%)
  • Result of the period (share of the Group): from EUR 28.0 million to EUR 34.6 million
  • Net financial debt: EUR 254.9 million (31 December 2021: EUR 147.8 million; 30 June 2021 : EUR 206.6 million)

Olivier Chapelle (CEO): “We are satisfied with the sales and profitability development of our Insulation activities, in a highly challenging environment characterised by supply chain disruptions, by historical inflation on raw materials, labour, transportation and energy costs, and by economic uncertainties. Volumes have been slightly higher than in 2021, and our business teams have been able to compensate all inflationary pressures during the period. In parallel,  our operations teams have displayed high flexibility to accommodate the supply chain challenges.

The first half of 2022 has seen intense M&A activity, with sequentially the closing of the Bedding divestment to Aquinos on 31 March, the closing of the Trimo acquisition on 29 April, the final exit out of the Proseat joint venture on 20 May. The Competition and Markets Authority in the UK has recently decided to refer the divestment case of Engineered Foams to a phase II investigation, with the closing of the transaction now expected latest by the first quarter of 2023.


OUTLOOK

Our Insulation business continues to perform well in difficult economic circumstances. However, the geopolitical turbulences, supply chain challenges and economic uncertainties prevent us from providing an outlook for the full year at this stage.

https://www.recticel.com/recticel-first-half-year-2022-results.html