SPP was Acquired by KODA Distribution Group
On September 30, 2013, Specialty Professional Products (“SPP”), a portfolio company of Calvert Street Capital Partners ("Calvert Street), was acquired by KODA Distribution Group, a leading specialty chemical distributor. SPP conducts business through two subsidiaries: ADAPCO, the leading distributor of mosquito control products to mosquito management professionals; and Red River Specialties, the leading supplier of products to the forestry, vegetation management, and range and pasture markets.
SPP represents an excellent example of Calvert Street’s investment strategy and approach. Shortly after closing the initial investment, Steve Burt was named CEO of the company. Mr. Burt led the development of the senior management team and sales force, an operational restructuring and investments in internal procedures and controls in order to build a high-margin specialty chemical distribution platform. The company subsequently completed and integrated two add-on acquisitions and made a significant strategic investment in its forestry segment in order to enhance its diversity and growth profile. Under Calvert Street’s ownership, SPP became a leader in four complementary market segments, and the company’s EBITDA more than tripled.
Steve Burt, CEO of SPP, commented: “SPP and the entire management team benefited from our relationship with Calvert Street and we thank them for all their support. In partnership with Calvert Street, SPP grew from a smaller, entrepreneurial business into a larger, sustainable, institutional organization. The sale to KODA is an excellent result for our investors, employees and the company overall. Our business has evolved significantly over the past several years and we are well positioned for a bright future with KODA.”
Josh Hall, Senior Partner with Calvert Street, added: “We thank Steve Burt, Trae Etre, Mike Cage and the entire SPP management team for being fine partners and for all their efforts that resulted in building the company so successfully over the last several years. They did an outstanding job. We wish them continued success with KODA.”
William Blair and Wilkie Farr & Gallagher represented SPP in this transaction.