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Coastal Construction Products, Jacksonville, FL, one of the largest independent distributors of caulking and sealants, waterproofing and concrete restoration materials in the US, has partnered with private-equity firm Supply Chain Equity Partners, Tampa, FL, to establish a national platform for growth and expansion in specialty construction products distribution.
The move gives Coastal support in its growth goals as a consolidator in a specialty distribution niche providing value-added services and support focused on the Waterproofing & Sealant (“Division-7”) industry. Coastal competes with larger, more general-purpose construction supply distributors like HD Supply Construction & Industrial – White Cap, Beacon Roofing Supply, Ram Tool and Dixie Construction products – and believes its dedicated Division-7 focus provides customers and suppliers a stronger value proposition including the industry’s leading product and applications support team backed by a vast inventory across 14 branches. Supply Chain Equity’s investment in Coastal expands their portfolio into a specialty distribution vertical and leverages their industry-focused management support and M&A expertise to support Coastal as a consolidation platform company.
“Our industry is going through a period of consolidation,” said Coastal CEO Martin S. Harrell, “and we are uniquely positioned to be at the forefront in distributing specialty construction products. Coastal has developed our brand of exceptional customer service, broad product knowledge and fully stocked inventories over 40 years with a unique, team-based culture. We believe this customer-centric focus provides excellent growth opportunities for opening new branch locations and partnering with like-minded distributors.” Coastal has 200 employees with 14 locations serving six states, Latin America and the Caribbean.
Supply Chain Equity Partners will assist Coastal as it implements a strategic growth plan to partner with those distributors who have a similar industry focus. In addition to investment, Supply Chain Equity Partners will provide mergers and acquisitions expertise to help Coastal maintain and expand its leadership position within the industry. SCE invests exclusively in value-added distribution and logistics companies across a range of product sectors. Uniquely, SCE was founded by distribution industry veterans and is backed by these experienced executives as well as a number of leading financial institutions
“We partner with strong management teams of companies within the distribution business to help them execute their vision,” said Jay Greyson, co-founder and partner at Supply Chain Equity Partners. “Coastal has an exceptional team, a highly scalable business model and experience in joining with other distributors to the benefit of all.” Coastal merged in 2015 with Atlanta-based GCP, a 25-year-old regional construction products distributor that expanded the company’s footprint across the western part of the Southeast.