Superior Capital Partners has acquired the assets of Q’SO Inc., a Fort Worth, Texas-based maker of adhesive and sealant products that are sold to the construction and infrastructure markets. No financial terms were disclosed. The new company will be known as Edge Adhesives.
Superior Capital Partners, LLC, a Detroit-based private equity firm, announced today that it has formed Edge Adhesives Holdings, Inc., an investment platform that was created to acquire the assets of Fort Worth, Texas-based Q’SO, Incorporated. The purchase price was not disclosed. Edge Adhesives represents the fourth acquisition and the third platform company for Superior’s inaugural fund which was raised in 2007 and 2008.
Edge Adhesives is a leading developer and manufacturer of specialty chemicals including adhesive and sealant products that are sold to the construction and infrastructure markets. Its products include hot-melt adhesives and peel-and-stick membranes that are used as window flashings, roofing underlayments or other products that seal residential and commercial structures from air, moisture and other elements. The company also manufactures gaskets, butyl tapes and sealants used in the HVAC, concrete and infrastructure markets. Edge’s innovative, proprietary and patented products are generally composed of synthetic polymer and butyl blends, which are created and applied without volatile organic compounds or solvents. The company expects to generate revenue in excess of $15 million in 2010.
Scott Hauncher, Superior’s Managing Director, commented, “Edge Adhesives is an excellent fit for Superior’s investment criteria of purchasing companies with identified growth opportunities where our capital can reduce leverage and fund operational improvements. We were attracted to the Company’s history of developing technology-driven, customized solutions for its customers, as well as its strong positioning relative to environmental and material trends in the building envelope adhesives market, evidenced by Edge’s significant new business opportunities with large building product customers.” Hauncher continued, “In addition, we were able to partner with Jim Taylor, an experienced performance improvement leader and CEO, to execute on Edge’s operational improvement plan.”
James Taylor, President of Edge commented, “Our team is excited about the partnership with Superior, an operationally-focused buyer, whose funding enables us to reduce debt, execute shop-floor profit improvements, and secure adequate working capital to serve an expanding customer base. Edge Adhesives is an exciting platform which will continue to expand within the adhesives market.”
The strategy of Superior is to combine capital, transaction experience and operational improvement expertise with proven management teams who have the vision, capability and commitment to successfully improve and grow their businesses. Superior seeks to acquire or recapitalize niche manufacturers, value-added distributors and specialty service companies. Generally, these companies will have annual revenue of $10 to $150 million, hold strong market positions, and have identifiable growth opportunities.