Acquisition of Raabe Corp. by Quest Specialty Chemicals announced

Citation

(2005), "Acquisition of Raabe Corp. by Quest Specialty Chemicals announced", Pigment & Resin Technology, Vol. 34 No. 2. https://doi.org/10.1108/prt.2005.12934bab.013

Acquisition of Raabe Corp. by Quest Specialty Chemicals announced

Acquisition of Raabe Corp. by Quest Specialty Chemicals announced

Huron Capital Partners L.L.C., a Detroit-based private equity firm, announced the acquisition of Raabe Corp. by Quest Specialty Chemicals, Seabrook, NH. Raabe, based in Menomonee Falls, WI, is a major manufacturer of custom-matched touch-up paint and a supplier of private-label aerosol paint-filling services. The company's touch-up products consist of ready-to-apply paints that match original equipment coatings and are used to repair the surfaces of industrial and commercial products.

Huron Capital Partners, the majority owner of Quest Specialty Chemicals, said the acquisition represents a plan by Quest to acquire companies involved in the specialty-coatings segment. Huron Capital Partners said Raabe would serve as a “platform company in Quest's coatings initiative”. Quest was founded and is headed by Frederick A. Quinn, who has formerly held the positions of CEO of K.J. Quinn, president of Pierce & Stevens Co. and CEO of Royal Adhesives & Sealants.

Quinn said Raabe's “strong market share and talented management team are critical assets on which Huron and Quest plan to execute a specialty- coatings growth strategy. We expect to make complementary acquisitions to Raabe's core business and to extend their capabilities into new applications”. Quinn said David Wacker would remain president of Raabe.

In its announcement on the acquisition, Huron Capital Partners said Raabe “fits squarely in Quest's coatings strategy to acquire companies that have developed unique solutions to the challenges of coatings application, surface protection, and the bonding of flexible and rigid substrates”. Huron Partner Michael R. Beauregard described Raabe as “a solid-core aerosol business serving a niche market with state-of-the-art manufacturing facilities”.

Separately, Quest announced that Gerard A. Loftus, who joined the company in 2003, has been named chief operating officer and chief financial officer.

Huron Capital is a private equity firm that specializes in investments in management buyouts, recapitalizations and corporate spin-offs involving companies with revenue of up to $200 million. The firm said its strategy involves partnering with management teams at niche manufacturing, specialty service and distribution companies that can achieve growth by means of acquisition and organic expansion.