M&A Deal Summary

Audax Private Equity, NexPhase Capital, Cloquet Capital Partners and Arrowhead Investment Management Acquire Quest Specialty Chemicals

On March 23, 2011, private equity firm Audax Private Equity, private equity firm NexPhase Capital, venture capital firm Cloquet Capital Partners and mezzanine finance firm Arrowhead Investment Management acquired chemicals company Quest Specialty Chemicals from Huron Capital and Buckingham Capital Partners

Acquisition Highlights
  • This is Audax Private Equity’s 1st, NexPhase Capital’s 1st, Cloquet Capital Partners’ 2nd and Arrowhead Investment Management’s 2nd transaction in the Chemicals sector.
  • This is Audax Private Equity’s 48th, NexPhase Capital’s 7th, Cloquet Capital Partners’ 5th and Arrowhead Investment Management’s 20th transaction in the United States.
  • This is Audax Private Equity’s 1st, NexPhase Capital’s 1st, Cloquet Capital Partners’ 1st and Arrowhead Investment Management’s 1st transaction in South Carolina.
Investment Fate
  • Quest Specialty Chemicals was sold to a consortium of financial buyers in 2015.

M&A Deal Summary

Date 2011-03-23
Target Quest Specialty Chemicals
Sector Chemicals
Buyer(s) Audax Private Equity
NexPhase Capital
Cloquet Capital Partners
Arrowhead Investment Management
Sellers(s) Huron Capital
Buckingham Capital Partners
Deal Type Secondary Buyout

Target

Quest Specialty Chemicals

Charleston, South Carolina, United States
Quest Specialty Chemicals is a specialty chemicals and coatings business. QSC is engaged in the formulation, manufacturing, and marketing of coatings designed to repair, restore, and preserve the assets of our customers. Quest Specialty Chemicals is based in Charleston, South Carolina.

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Buyer(S) 4

Buyer

Audax Private Equity

Boston, Massachusetts, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1999
PE ASSETS 19.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Audax Private Equity is a private equity firm focused on acquiring control positions in a variety of mid to large North American headquartered companies. The Firm segments its activities into lower middle-market and larger scale investing. Within its larger group, Audax targets profitable businesses valued up to $800 million and within its lower middle-market group, the Firm seeks companies valued up to $125 million. Sectors of interest include business services, consumer products/services, financial services, healthcare services, industrial services, software, and technology. Audax has a special interest in businesses that can benefit from a buy and build investment strategy for growth. Audax Private Equity was formed in 1999 and is based in Boston, Massachusetts.


DEAL STATS #
Overall 50 of 170
Sector: Chemicals M&A 1 of 6
Type: Secondary Buyout M&A Deals 18 of 73
State: South Carolina M&A 1 of 1
Country: United States M&A 48 of 161
Year: 2011 M&A 3 of 8
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2011-02-01 Numotion

Hazelwood, Missouri, United States

Numotion is a provider of complex rehabilitation products, including custom power and manual wheelchairs for disabled adults and children. Numotion was founded in 2001 and is based in Hazelwood, Missouri.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2011-05-10 Northern Digital

Waterloo, Ontario, Canada

Northern Digital, Inc. is a developer and manufacturer of optical and electromagnetic technology for image-guided surgical, industrial test and measurement, and research applications. With over 9,000 advanced measurement systems installed worldwide, products are used for computer-assisted surgery and therapy, industrial part development and quality control, and other applications such as clinical gait analysis and sports and biomechanics research. The company was founded in 1981 and is based in Waterloo, Canada.

Sell -
Buyer

NexPhase Capital

New York, New York, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 2007
PE ASSETS 2.6B USD
Size Large
Type Sector Agnostic
DESCRIPTION

NexPhase Capital is the private equity investment arm of investment bank Moelis & Company. The firm targets growth equity and control buyouts requiring equity investments of $40 to 225 million. NexPhase Capital has particular interest in the business services, consumer and retail, financial services, healthcare services, industrial and telecom industries. NexPhase Capital was formed in 2007 and is based in New York, New York.


DEAL STATS #
Overall 7 of 44
Sector: Chemicals M&A 1 of 1
Type: Secondary Buyout M&A Deals 3 of 12
State: South Carolina M&A 1 of 1
Country: United States M&A 7 of 42
Year: 2011 M&A 1 of 6
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2010-11-01 WINFertility

Greenwich, Connecticut, United States

WINFertility is a specialty benefit management company that provides comprehensive fertility and reproductive health management services to healthcare insurers and other payors. WIN Fertility was founded in 1998 and is based in Greenwich, Connecticut.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2011-04-22 North American Partners in Anesthesia

Melville, New York, United States

North American Partners in Anesthesia is a single specialty anesthesia and perioperative management company in the United States. NAPA is comprised of the most respected clinical staff, providing thousands of patients with superior and attentive care. North American Partners in Anesthesia was founded in 1986 and is based in Melville, New York.

Buy -
Buyer

Cloquet Capital Partners

New Canaan, Connecticut, United States

Investor Investor Investor


Category Venture Capital Firm
Founded 2003
Size Small
Type Sector Agnostic
DESCRIPTION

Cloquet Capital Partners is a private investment firm focused on early to growth stage company investing. Areas of interest include IT services, value-added manufacturing, distribution, and business services. Cloquet looks to commit up to $5OOK per transaction. Cloquet Capital Partners was formed in 2003 and is based in New Canaan, Connecticut.


DEAL STATS #
Overall 5 of 5
Sector: Chemicals M&A 2 of 2
Type: Secondary Buyout M&A Deals 1 of 1
State: South Carolina M&A 1 of 1
Country: United States M&A 5 of 5
Year: 2011 M&A 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2010-01-01 Aeris

San Jose, California, United States

Aeris is a global network that provides IoT solutions for mission-critical M2M and IoT programs. Aeris Communications IoT platform provides the technical and functional building blocks required to turn unconnected cars, trucks, motorcycles, scooters, and small engines. Aeris was founded in 1992 and is based in San Jose, California.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2011-09-09 Contractors Wire & Cable

Livermore, California, United States

CWC is an independent outsource manufacturer and wholesale distributor of low voltage cable and wire products to the security, fire, audio, irrigation and traffic signal markets. CWC customers typically consist of installers, electrical contractors and other distributors serving both residential and commercial markets.

Sell -
Buyer

Arrowhead Investment Management

Greenwich, Connecticut, United States

Investor Investor Investor Investor


Category Mezzanine Finance Firm
Founded 1996
Size Middle-Market
Type Sector Agnostic
DESCRIPTION

Arrowhead Investment Management is a provider of subordinated debt, preferred stock and non-control common equity to mid-sized businesses. Arrowhead invests alongside private equity sponsors in acquisitions, buyouts, recapitalizations and growth capital transactions. Arrowhead is a generalist investor, however the Firm tends to focus on healthcare, packaging, chemicals, consumer products, industrial manufacturing, value-added distribution and business services. Arrowhead looks to commit $10 to $100 million in transactions valued up to $500 million. Arrowhead Investment Management was formed in 1996 and is based in Greenwich, Connecticut.


DEAL STATS #
Overall 20 of 24
Sector: Chemicals M&A 2 of 2
Type: Secondary Buyout M&A Deals 2 of 6
State: South Carolina M&A 1 of 1
Country: United States M&A 20 of 24
Year: 2011 M&A 1 of 4
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2008-10-22 Driven Brands

Charlotte, North Carolina, United States

Driven Brands is a parent company of automotive aftermarket brands across four distinct verticals: Repair & Maintenance, housing Meineke Car Care Centers; Paint & Collision, housing Maaco, CARSTAR, and ABRA; Distribution, housing 1-800-Radiator & A/C and Spire Supply; and Quick Lube, housing Take 5 Oil Change. Driven Brands was incorporated in 1972 and is based in Charlotte, North Carolina.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2011-05-12 SRAM

Chicago, Illinois, United States

SRAM LLC is a producer of a full line of high performance bicycle components for original equipment manufacturers and independent bike dealers that are sold primarily under the SRAM, RockShox, Avid, Truvativ, and Zipp brand names.

Sell -

Seller(S) 2

SELLER

Huron Capital

Detroit, Michigan, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1999
PE ASSETS 2.0B USD
Size Large
Type Sector Agnostic
DESCRIPTION

Huron Capital Partners is a private equity firm that seeks to acquire or recapitalize niche manufacturers, value-added distributors and specialty service companies. Prospective transaction situations include management buyouts, corporate spin-offs, recapitalizations, family successions and consolidations. Huron prefers opportunities located in the US and Canada. Target companies typically have revenues between $20 and $200 million and EBITDA of at least $5 million. Huron can commit up to $10 million and $50 million of equity capital per transaction. Huron Capital Partners was formed in 1999 and has offices in Detroit, Michigan and Ontario, Canada.


DEAL STATS #
Overall 12 of 40
Sector: Chemicals M&A 1 of 2
Type: Secondary Buyout M&A Deals 6 of 17
State: South Carolina M&A 1 of 1
Country: United States M&A 12 of 37
Year: 2011 M&A 2 of 4
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2011-02-13 Victoria Fine Foods

Brooklyn, New York, United States

Victoria Fine Foods LLC is a producer and marketer of specialty Italian food products, including all natural pasta sauces, Italian condiments, and other premium Italian products. Victoria Fine Foods products are predominantly sold in supermarkets, warehouse clubs, and specialty stores throughout the U.S. and Canada.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2011-05-31 Jensen Hughes

Baltimore, Maryland, United States

Jensen Hughes is a consulting firm specializing in fire protection engineering, fire code consulting and related life safety services in commercial, institutional, and industrial facilities. Jensen Hughes was founded in 1939 and is based in Baltimore, Maryland.

Buy -
SELLER

Buckingham Capital Partners

New York, New York, United States

Category Private Equity Firm
Founded 2004
Size Middle-Market
Type Sector Agnostic
DESCRIPTION

Buckingham Capital Partners is a private investment firm specializing in leveraged buyouts and recapitalizations of middle-market industrial and manufacturing companies. Buckingham looks to makes control equity investments of $2 to $15 million in companies valued up to $100 million. Buckingham prefers to invest in companies headquartered in the US. Prospective businesses generally have stable cash-flows and are strong competitors in the markets they serve. Buckingham Partners was formed in 2003 and is based in New York City.


DEAL STATS #
Overall 2 of 6
Sector: Chemicals M&A 1 of 3
Type: Secondary Buyout M&A Deals 1 of 3
State: South Carolina M&A 1 of 2
Country: United States M&A 2 of 6
Year: 2011 M&A 1 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2011-01-04 SRC Worldwide

Cleveland, Ohio, United States

SRC Worldwide is a producer of fused magnesium flux, a critical chemical component in the production and recycling of magnesium and aluminum alloys. Magnesium flux is also used in a variety of industrial and other applications, including desiccants and the manufacture of specialized catalysts.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2011-11-04 Trantech

Edgefield, South Carolina, United States

Trantech is a domestic designer, manufacturer, and supplier of branded radiators and cooling systems for transformer original equipment manufacturer products used in the electric power generation, transmission, and distribution markets and other industrial end markets. Trantech was founded in 1932 and is based in Edgefield, South Carolina.

Sell -