SC&H Capital, a leading investment bank specializing in M&A advisory for middle-market companies, is pleased to announce that its client, Paint Works, has been acquired by Automotive Color & Supply Corporation, a portfolio company of WILSquare Capital.
Paint Works is the leading distributor of AkzoNobel automotive paints in the East Texas region to auto body shops and collision repair centers. Chad Neal, President of Paint Works, founded the company in Tyler, Texas in 1998 and successfully grew the business from a single location to its current footprint of four locations serving customers in East Texas, North Texas, Northern Louisiana and Southern Arkansas. The transaction provides Paint Works with a larger platform and access to capital to continue to execute on the Company’s growth opportunities in the ever-expanding Texas market.
The buyer, Automotive Color & Supply Corporation, is an Indianapolis, Indiana based distributor with ten locations serving customers in the automotive, heavy truck and recreational vehicle industries in the Midwest. ACS was recently recapitalized by WILSquare Capital, a Saint Loius based private equity fund, in November 2023 and the Paintworks transaction is the first add-on acquisition for the company. The transaction provides ACS with an expanded footprint in a high growth geography and access to a new supplier relationship with Akzo Nobel.
“We look forward to the next chapter of Paint Works as a part of the ACS team. Both companies have a similar philosophy of leveraging technical expertise to provide a high level of customer service and we are excited to see what we can accomplish together in the future” said Chad Neal, President of Paint Works. “The team at SC&H Capital was an invaluable resource to me throughout the transaction process. Their knowledge of and relationships in the auto paint distribution industry resulted in finding a buyer that aligned with the Paint Works culture and produced an excellent outcome for the Paint Works team.”
“SC&H Capital was proud to have the opportunity to assist Chad and his team in finding the future steward of the Paint Works business that they worked to build over the last 20 years,” said Greg Hogan, Managing Director at SC&H Capital. “The M&A market for distributors of automotive paint remains active with multiple well capitalized buyers. We were pleased to be able to find the right fit for Paint Works team and look forward to their future success.”
The transaction was led by Greg Hogan and Henry Liang at SC&H Capital. Ron Bornstein and Andrew Zarda of McDowell, Rice, Smith & Buchanan PC served as legal counsel to the company. Terms of the transaction were not disclosed.
About SC&H Capital
SC&H Capital is an investment banking and advisory firm specializing in mergers and acquisitions (M&A), employee stock ownership plans (ESOP), distressed M&A, capital raises, financial restructurings, and business valuations for middle-market companies nationally. SC&H Capital delivers services across numerous industries including technology, healthcare, manufacturing, consumer, business and professional services, and government contracting. We are recognized for delivering relevant market insights and tailored solutions to help owners achieve their true strategic value. To learn more, visit www.schcapital.com.
