SAN CARLOS — A Bay Space paint firm that’s operated as an unbiased enterprise for three-quarters of a century has been purchased by a personal funding group in a deal that positions the paint agency for loads of development.
Kelly-Moore Paints, a 1,200-employee firm based in 1946, has been purchased by Flacks Group, an funding agency with property topping $2 billion that seeks to purchase corporations whose manufacturers are seen as out of favor.
The deal erased a major debt burden for San Carlos-based Kelly-Moore Paints and locations the corporate on a path for development and enlargement, within the view of Charles Gassenheimer, managing director with Flacks Group.
“We're concerned about development for Kelly-Moore,” Gassenheimer stated. “This was an especially opportunistic transaction that may permit for large development and scale going ahead.”
The deal ends 76 years of unbiased possession of Kelly-Moore, one of many Bay Space’s best-known paint manufacturers.
“We may have the assets and talent to proceed to innovate and ship the very best merchandise and experiences to our clients within the skilled paint trade and stay extremely aggressive within the market” with the brand new possession construction, stated Steve De Voe, chief govt officer of Kelly-Moore Paints.
Kelly-Moore and Miami-based Flacks Group didn’t disclose the phrases of the transaction.
“Since 1946, the corporate’s high-quality merchandise have exemplified American manufacturing and its distinctive service has earned the corporate a loyal buyer base,” Gassenheimer stated in discussing the acquisition of Kelly-Moore Paints.
Based mostly on its mission assertion, Flacks Group goals to undertake a turnaround at Kelly-Moore. The best way this is likely to be completed, in Kelly-Moore’s case, wasn’t instantly revealed.
“Flacks Group specializes within the acquisition and operational turnaround of medium-sized companies,” based on a publish on the funding agency’s web site. “Flacks Group invests in corporations with heritage manufacturers that function companies typically thought-about out-of-favor for a wide range of causes.”
Within the case of Kelly-Moore Paints, Flacks Group believes it may wield most flexibility with its buy as a result of it purchased the paint retailer, distributor and producer in an all-cash deal.
Flacks Group goals to make most use of the paint firm’s manufacturing advanced in Texas. Just a few years in the past, Kelly-Moore shut a producing middle within the Bay Space.
One other potential development level is the Kelly-Moore distribution advanced in Union Metropolis, based on Gassheimer.
“The engine is the Texas manufacturing facility however 75% of the income outcomes from the distribution middle in Oakland, which is the important thing to our retailer community in California,” Gassheimer stated.
The brand new homeowners of Kelly-Moore intend to make use of the paint firm as a platform so as to add extra acquisitions to the retailing agency, which might allow extra development and a wider attain.
“We've got no exterior buyers and we now have no stress to reply to exterior buyers,” Gassheimer stated. “We're going to give attention to the wants of the enterprise and make selections which can be primarily based on what's finest for the enterprise.”