Key Information
- SectorIndustrial
- TypeCo-investment
- StrategyBuyout
- Investment partnerSupply Chain Equity Partners
- Websitehttps://www.coastalone.com/
2018
Year of investment
19
Locations in the United States
United States
Geography
About
Coastal Construction is a value-added distributor of commercial waterproofing construction products, focused on thermal and moisture protection, air barriers and fire protection. Solution-specific products include caulking and sealants, waterproofing, concrete repair, and fire protection.
Why we invested
Coastal Construction represented an opportunity to acquire a family-owned business at an attractive purchase price. This acquisition was made in partnership with a specialised private equity firm and a strong management team, which contributed a significant amount of proceeds to the transaction. Coastal Construction is a market leader in Southeast United States with specialized expertise in the commercial waterproofing market, proven track record of profitable growth and clear signs of further growth via merger & acquisition ('M&A').
Value creation
During our ownership period, the team achieved significant milestones. They more than doubled the trailing twelve months’ adjusted EBITDA, successfully navigated and grew through the Covid-19 pandemic and transitioned to a new Enterprise Resource Planning ('ERP') software system, which improved the capability to manage the business. The team also implemented strategic pricing initiatives to increase gross margins, opened three greenfield branches and completed two add-on acquisitions. Coastal Construction was sold to Beacon Building Products [Nasdaq: BECN], a publicly-traded distributor of building products, including roofing materials and complementary products such as siding and waterproofing.
The information provided herein is only for professional clients. The case study provided is only for illustrative purpose and is not a recommendation to buy or sell any financial instruments or adopt a specific investment strategy.
Investments with similar characteristics, as well as their past performance may not be repeated in the future. Each asset class have specific risks. Investments in private assets involve a higher degree of risk than more traditional investments. The case study may have been chosen for a variety of reasons, such as being representative of the investment capabilities of the investment team. The circumstances presented are unique to each deal. They do not represent a full picture of the investments made by their respective team and of the product(s) that invested into the asset(s) presented in the case study.