WEST DES MOINES, Iowa (May 24, 2021) – Midwest Growth Partners (MGP), a West Des Moines, Iowa-based private equity fund, announces the sale of Inland Coatings Holdings, LLC (“Inland” or the “Company”) to a confidential strategic buyer. MGP originally invested in Inland on October 25, 2014 and subsequently completed the add-on acquisitions of TRUCO Coatings on October 31, 2018 and Aldo Products on November 30, 2019.
Inland, founded in 1978 and headquartered in Adel, Iowa began as a distributor of synthetic coatings to the automotive aftermarket for use as rust inhibitors. Today, Inland primarily sells roof coatings and specializes in manufacturing SEBS, silicone, acrylic and polyurethane chemistries with manufacturing facilities in Iowa and North Carolina.
MGP and management successfully grew the Company by adding to the executive management team, establishing KPI’s, implementing standard operating procedures, implementing a CRM system, consolidating financial and inventory systems across the three brands, expanding its manufacturing footprint, hiring a nationwide sales team, and finding raw material purchasing synergies that significantly expanded gross margin.
“The sale of Inland is bittersweet for all of us. On one hand we are sad to exit from the MGP portfolio, but on the other, we are excited to enter the family of the strategic buyer who we believe is an excellent fit for the Company and Inland’s employees” noted Coridan McGinley, President of Inland. “Inland’s products and manufacturing facilities fit very well into the buyer’s strategic vision and combining our products and resources will add value to our customers,” said McGinley.
Joe Greving, co-founder and Partner of Midwest Growth Partners stated, “The sale of each of our portfolio companies is eventually inevitable and the timing of the Inland exit is one in which we weighed what was best for Inland’s employees and MGP’s investors. It was clear to us that selling to this buyer was best for the employees while also providing an excellent financial return to our investors. The buyer is well positioned to preserve the legacy of Inland while also providing opportunities for each employee and the communities in which they live which is very important to us. We would like to thank long-time friend and former President, Doug Walmsley, Coridan McGinley, Executive VP of Sales, Greg Arnold, and all the wonderful employees of Inland for making this an extremely successful investment for our firm and investors. The Inland investment is a great example of how lower-middle market private equity funds can add value to small businesses by helping them professionalize and grow without losing their entrepreneurial spirit.”
For more information on Midwest Growth Partners, its investment strategy, criteria or portfolio companies, please visit www.mgpfund.com. For more information on Inland, please visit www.inlandcoatings.com.