Key Information
- SectorIndustrial
- TypeCo-investment
- StrategyBuyout
- Investment partnerSupply Chain Equity Partners
- Websitehttps://www.coastalone.com/
Coastal Construction
A value-added distributor of commercial waterproofing construction products
Coastal ConstructionSoutheast United States
2018
Year of investment
19
Locations in the US
North America
Geography
About Coastal Construction
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 in partnership with a specialized private equity firm and strong management team that rolled a significant amount of proceeds intro the transaction. Coastal Construction is a market leader in the Southeast U.S. with specialized expertise in the commercial waterproofing market, proven track record of profitable growth and clear signs of further growth via M&A.
Value creation
During our ownership period, the team more than doubled trailing twelve months adjusted EBITDA, successfully navigated and grew through the Covid-19 pandemic, transitioned to a new Enterprise Resource Planning (ERP) software system (improving capability to manage the business), implemented strategic pricing initiatives to increase gross margins, and opened three green-field 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.
Related insights
Important information
Any reference to regions/ countries/ sectors/ stocks/ securities is for illustrative purposes only and not a recommendation to buy or sell any financial instruments or adopt a specific investment strategy.