Meridian General Capital has bought PowderCoat Services Inc., as it looks to expand its presence in the industrial services sector. Financial terms were not disclosed.
PowderCoat, founded in 1981 and based in Anaheim, California, provides coating services to the automotive, construction, consumer and electronics sectors. The target uses a coating process called electrophoretic deposition, a method that places chemicals onto surfaces using electrical currents.
Meridian founder Ravi Rao says the acquisition of PowderCoat “will assure us of meeting our ambitious growth plans in this industry segment.” Meridian is a Los Angeles-based lower middle market private equity firm that invests in businesses that have up to $100 million in revenue. The PE firm focuses on the aerospace, logistics, business services, technology and packaging sectors.
Deals among coatings manufacturers have been picking up in the middle market. Axalta Coating Systems Ltd. (NYSE: AXTA) purchased Netherlands distributor Geeraets Autolak; Audax Private Equity-backed Innovative Chemical Products (ICP) bought adhesives maker Fomo Products Inc.; and Sorenson Capital acquired a stake in adhesives maker Axiom Materials Inc.