GAF Acquires Quest Construction Products

GAF announced it has completed the acquisition of Quest Construction Products (QCP), a former division of Quest Specialty Chemicals and a supplier of fluid-applied roofing systems and roof-coating products in North America. The transaction, which also provides GAF with a strong presence in coating solutions for pavement and vertical surfaces, is expected to accelerate the robust growth of GAF’s commercial business.

QCP brings excellent brands and product lines to GAF including the Hydro-Stop family of liquid membrane products, the United Coatings line of coating solutions, and the StreetBond pavement coatings. The acquisition instantly gives GAF a position in a high-tech, environmentally friendly, and economically efficient segment of the commercial roofing business.

QCP’s strategically positioned geographic footprint and unique technical expertise in the field will provide GAF with additional solutions to bring to its customers. QCP’s products have gained rapid acceptance in the marketplace due largely to their reflectivity, ease of application, and energy-efficiency. These highly practical and effective products will complement GAF’s existing offerings of roofing technologies and commercial solar solutions.

“This acquisition combines a North American manufacturer and marketer of roofing products with a producer of fluid-applied solutions,” says Bob Tafaro, president and CEO of GAF. “We have acquired excellent brands and will provide an enhanced platform for their growth. QCP’s differentiated and innovative products will also boost our commercial business’s competitive advantage by offering a broader range of solutions to the market. We are empowering our contractors with the products they need to grow their businesses while strengthening our relationships with strategic building owners.”

“This acquisition demonstrates GAF’s ongoing commitment to growth and leadership in the commercial roofing industry. It is in keeping with the extraordinary investments we have made and continue to make to add capacity and gain share in commercial solutions such as insulation (ISO), TPO, and PVC single-ply membranes. We know that the QCP team will further enrich our culture of achievement, and we look forward to working together on a smooth integration.”

Valspar Acquires Quest Automotive Products and Quest Industrial Products

Quest Specialty Chemicals has completed the sale of the Quest Automotive Products and Quest Industrial Products businesses to The Valspar Corp. The two divisions account for approximately $190 million in sales of specialty coatings in the automotive, transportation and industrial markets. Financial terms are not being disclosed.

“Over the past several years we have successfully built strong teams and grown these businesses into leadership positions in their markets. I’m very pleased that in Valspar we have a buyer who can continue to build the business, brands and customer relationships,” says Doug Mattscheck, president and CEO of Quest Specialty Chemicals.

QAP manufactures automotive refinish coatings, fillers, putties, and other accessories primarily under the Matrix, Pro-Spray and USC brands globally, and QIP serves the professional and consumer markets with aerosol spray products and coatings for industrial applications under the Patriot, Raabe and Precision Color brands.

“Our brands are well recognized and respected, and they compete favorably with premium brands in performance and color-matching at a better value,” says Mattscheck. “They will be a good complement to Valspar’s product range.”

Quest previously announced that it was actively seeking new ownership with the blessings of its equity partners, Audax Private Equity and Moelis Capital Partners. Quest retains ownership of the Quest Construction Products business, which makes and sells roofing systems, reflective coatings for buildings and pavement coatings for the construction market.

Quest Specialty Chemicals Implements ‘Buy and Build’ Strategy

If you own a coatings company with a recognizable brand, a leading market position and an entrepreneurial management team with a growth culture, Quest Specialty Chemicals’ CEO Doug Mattscheck wants to talk to you.

Quest has acquired 10 companies in the last 10 years—three since Mattscheck became CEO in 2012—and he wants to acquire more.

“Acquisitions are the catalyst of our growth and operating improvements augment our growth,” Mattscheck says. “The top 10 coatings companies control the lion’s share of the market, and another thousand companies battle for the balance of it. We want to acquire the best of those small- to medium-sized coatings companies.

“We have a buy-and-build strategy. We buy companies with solid management teams, strong brands and high-value products that have a high touch component in sales and technical support. Then we work hard at efficiently managing our brands, increasing market penetration, developing new products and making operational improvements.“

Quest is the 12th largest coatings company in the United States and one of the largest privately held coatings companies in the world. Last year’s sales were $239 million and are on the rise again in 2014.

The company operates three complementary divisions: Quest Automotive, Quest Industrial and Quest Construction. Each manufactures and markets some of the leading brands in the automotive aftermarket, industrial, transportation and construction industries.

“We serve large, multi-billion global markets that are fragmented. They are not economical for high-volume coatings companies and often too technical for smaller competitors. However, they offer significant growth opportunities for Quest and have allowed us to financially outpace, as a percentage of growth, the world’s largest coatings manufacturers,” Mattscheck adds.

“Our goal is to become a major global coatings company. We can do that by further diversifying our products, end markets, customers and geographies. We want leading positions in niche markets where we can obtain the highest margins and fastest growth.”