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Huron Capital Buys 6th Specialty Chemical Company

Published on 2007-12-07. Author : SpecialChem

DETROIT -- Huron Capital Partners LLC has announced through its portfolio company, Quest Specialty Chemicals, Inc., it has acquired Hydro-Stop, Inc. Hydro-Stop will be managed under Quest's Architectural & Construction Coatings Unit, United Coatings LLC. Based in Charleston, South Carolina, Hydro-Stop is a manufacturer of sustainable water-based roofing and waterproofing systems for the building envelope. The Company's products provide fully reinforced systems with tough non-woven polyester fabric designed for roofing and flashing applications of all types. The Company's product technologies form a flexible, ultra-violet resistant elastomeric compound ideal for maintaining "cool roof", energy-saving environments. Terms of the transaction were not disclosed.

Commenting on the transaction, Christopher S. Sheeren, a partner at Huron, stated, "When combined with United Coatings, Hydro-Stop will make Quest one of the largest suppliers of acrylic roof coatings in the country, with a nationwide footprint and customers all over the world. This transaction significantly enhances Quest's offering of technical architectural and construction coatings. Huron looks forward to committing additional equity capital to Quest as the business continues to execute its buy & build strategies."

The acquisition marks the 6th specialty chemical company that Huron has acquired through its Quest platform. Huron formed Quest in 2004 in partnership with specialty chemical industry executives Fred Quinn (Quest founder) and Gerry Loftus, and long-time chemical industry investor Carol Bramson. Michael R. Beauregard, a partner at Huron, commented, "Since 2004, Huron and the Quest team have built a diversified coatings company focused on surface protection of rigid and flexible substrates through significant organic growth and a series of synergistic add-on acquisitions. With 2008 revenues and EBITDA expected to exceed $100 million and $20 million, respectively, Quest now holds strategic positions in all three specialty chemical market segments: OEM/Industrial, Architectural & Construction, and Transportation. We are looking forward to providing additional support for Quest's aggressive growth initiatives in 2008."

About Huron Capital Partners LLC

Huron Capital is a leading private equity firm investing in lower middle- market companies. The firm typically invests between $10 million and $50 million in equity to sponsor management buyouts, growth initiatives, recapitalizations, and corporate spin-offs of well-positioned companies having revenues up to $200 million. Through its operational approach, Huron's strategy is to partner with strong management teams at niche manufacturing, specialty service, and value-added distribution companies that can be built through acquisition and organic growth.

In the past 12 months, Huron has completed acquisitions in a variety of areas including commercial printing, staircase parts, ground passenger transportation services, specialty chemicals, laboratory testing services, building products and office furniture components. Huron expects to continue its strong momentum into 2008 with multiple new platform and add-on acquisitions expected to close by the end of the first quarter.

Huron Capital manages $257 million through two private equity funds, The Huron Fund, L.P. ($72 million, 2000) and The Huron Fund II, L.P. ($185 million, 2005). Since its founding in 1999, Huron has acquired or invested in 31 companies and has generated a realized IRR exceeding 65% for its Limited Partners. Huron has committed over 75% of its latest fund and is aggressively seeking new investment opportunities.

Source: Huron Capital Partners LLC

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