Audax, Moelis complete sale of Quest Construction Products

Audax Private Equity and Moelis Capital Partners have completed the sale of Quest Construction Products, the remaining division of Quest Specialty Chemicals, Inc., to Building Materials Corporation of America. With the sale, Audax and Moelis have fully exited their investments in Quest.

Press Release

Audax Private Equity (“Audax”) and Moelis Capital Partners (“MCP”) have completed the sale of Quest Construction Products (“QCP”), the remaining division of Quest Specialty Chemicals, Inc. (“Quest”), to Building Materials Corporation of America (d/b/a/) GAF (“GAF”), headquartered in Parsippany, New Jersey. Upon closing, Audax and MCP will have fully exited their investments in Quest, following the sale of the Quest Automotive Products and Quest Industrial Products divisions to The Valspar Corporation (NYSE: VAL) earlier this year.

QCP manufactures and supplies roofing systems, coatings solutions, and protective pavement systems for the non-residential construction industry under the Hydro-Stop ®, United ®, and StreetBond ® brands. Since Audax’ and MCP’s initial investment in 2011, QCP completed two acquisitions, adding decorative asphalt coatings to its product offering and expanding QCP’s geographic presence into Europe.

Geoffrey S. Rehnert, Co-CEO of Audax Group, said: “We congratulate Doug Mattscheck and his team on successfully building QCP through two acquisitions, and expanding into new end markets and geographies. We have enjoyed partnering with Doug and Moelis Capital to execute our acquisition strategy.”

Kurt Larsen, Managing Partner of Moelis Capital Partners, said: “We applaud Doug and his team on their accomplishment and wish the entire organization continued success with GAF. We have appreciated working together with Doug and Audax to achieve our vision with Quest.”

Doug Mattscheck, CEO of Quest, said: “Both Audax and MCP have been great partners and resources in helping our team transform Quest into three strategic platforms through four acquisitions and investments in accelerating growth.”

Moelis & Company LLC and Piper Jaffray & Co. advised Quest. Kirkland & Ellis LLP and Fredrikson & Byron, P.A. served as legal counsel to Quest.

About Quest Construction Products:

Quest Construction Products is the recognized leader in roofing systems, coating solutions, and decorative pavement coatings. QCP provides solutions for a wide range of commercial construction applications, including coatings-based solutions for the entire building envelope (new construction and re-roofing, exterior walls, and foundations) and pavement surfaces (both asphalt and concrete) with a full-line technology offering to accommodate all quality, environmental and weather, and cost considerations.

About Audax Private Equity:

Since its founding in 1999, Audax Private Equity has focused on building leading middle market companies. In the last ten years, Audax has invested over $3 billion in 87 platform and 402 add-on companies. Through its disciplined Buy & Build approach, Audax seeks to help platform companies execute add-on acquisitions that fuel revenue growth, optimize operations, and significantly increase equity value. Audax Private Equity is a part of Audax Group, an alternative asset management firm specializing in investments in middle market companies. With offices in Boston, New York, and Menlo Park, Audax Group has over $6 billion in assets under management across its Private Equity, Mezzanine, and Senior Debt businesses.

About Moelis Capital Partners:

Moelis Capital Partners, an affiliate of Moelis Asset Management, is a middle market private equity firm founded in 2007. MCP manages approximately $870 million of committed private equity capital and specializes in traditional private equity investments in the middle market. For more information, please visit www.moeliscapital.com.