KODA DISTRIBUTION GROUP
Koda Distribution Group
KODA Distribution Group of Garland, TX has been acquired by Audax Group of Boston, MA. Sperry, Mitchell & Company initiated this transaction, assisted in the negotiations, and served as exclusive financial advisor to KODA Distribution Group.
Overview
KODA Distribution Group (“KDG”) is the largest independent specialty chemical distributor in the United States. The company consists of three distinct operating divisions: Monson Companies, based in Leominster, MA; GMZ, based in West Chester, OH; and Ribelin Sales, based in Garland, TX. KDG provides the widest range of specialty chemical lines in the industry, and offers unmatched technical support and value-added services, such as formulation, blending, and packaging. The company sells nationally to a broad and diversified group of customers.
Audax Group (www.audaxgroup.com) is one of the largest and most active private equity groups investing in mid-sized domestic companies. Audax pursues a “buy and build” strategy, consolidating fragmented industries through multiple add-on acquisitions.
Situation
- Since the company’s founding in 1987, KDG has successfully executed many growth initiatives, including eight add-on acquisitions, geographic & product line expansion, and end-market diversification. Given the need for additional capital to pursue further add-on prospects, the owner of KDG determined in 2010 that it was time to explore strategic options, including a sale or recapitalization of the business.
- KDG’s owner is a long-term client of Sperry, Mitchell, having successfully sold several businesses through us over the years. As a result, the owner trusted us to handle the sale of KDG, his largest and most valuable holding.
Sperry Mitchell Solution
- We believe in “relationship banking.” Our partnership-based approach, track record of successful sale assignments, and history of providing honest and helpful advice ensured that KDG’s owner never considered another advisor to sell his largest and most valuable business.
- We work strategically to achieve the best deals for our clients. Although two large multinational chemical distributors demonstrated keen interest in acquiring KDG, Audax ultimately offered the most attractive deal, addressing our client’s economic and non-economic priorities and goals. We were ultimately able to close quickly on a premium deal with Audax by leveraging the interest of these two major industry players.
