RAABE CORPORATION ACQUIRED BY QUEST SPECIALTY CHEMICALS
Raabe Corporation (Menomonee Falls, Wisconsin), a privately-held manufacturer of custom touch-up paints and private label aerosol and liquid coatings, was acquired by Quest Specialty Chemicals LLC (New Milford, New Hampshire). Huron Capital Partners, through an investment in Quest, provided equity capital to fund the transaction. M&I Marshall & Ilsley Bank provided senior debt financing and Harris Nesbitt Capital, Inc. provided subordinated debt for the transaction.
Raabe will continue to operate from its Menomonee Falls facility under the direction of its current management team, with David Wacker continuing as President. Quest intends to manage Raabe as the cornerstone of a strategy for building a world-class coatings and adhesives business through acquisitions. Kent Raabe, one of the selling shareholders, commented: “We were very pleased to find a buyer that shared our commitment to employees and exceptional customer service. We’re confident that Raabe Corporation will continue to prosper under the direction of the new shareholders.”
Grace Matthews, Inc. advised the shareholders of Raabe Corporation in the sale of the business. "This is a deal that truly worked for everyone," said John Beagle, Managing Director at Grace Matthews. "The Raabe shareholders received a full value for their company that will enable them to fund their philanthropic interests. Quest and Huron acquired one of the most respected companies in the industry as a growth platform for aerosol products. And finally, the current management team will have opportunities to grow the business in new directions."
About Raabe Corporation:
Founded by the entrepreneur Richard Raabe in 1951, Raabe Corporation has evolved from a modest store-front mixer of touch-up paints for local auto shops into a nationally recognized leader in custom matched touch-up paints and private label aerosol coatings. Raabe's ready-to-apply touch up paints are formulated to match original manufacturers' finishes in terms of color and gloss, and are used to repair minor nicks and scratches on product surfaces. The company also manufactures branded aerosol coatings under private label contracts for many well-known paint companies.
About Grace Matthews:
Grace Matthews, Inc., based in Milwaukee, provides merger, acquisition, and finance advisory services. Grace Matthews' principals have successfully completed over 100 transactions on behalf of clients ranging from private, middle-market companies to large foreign and U.S.-based multi-nationals.