M2 EQUITYBITES-February 13, 2018-BGL Advises on Sale of Coatings and Wood Protection Products
Maker U-C Coatings
US-based investment bank Brown Gibbons Lang and Company guided the sale of US-based coatings and wood protection products manufacturer U-C Coatings, LLC (U-C Coatings), a portfolio company of Argosy Private Equity and Sidereal Capital Group, to High Road Capital Partners, the bank said.
Based in Buffalo, New York, U-C Coatings is a manufacturer and distributor of proprietary, branded coatings and wood protection products for the logging, lumber, furniture, and woodworking industries.
Consultancy firm PricewaterhouseCoopers (PWC) and market analyst Future Market Insights (FMI), have in separate reports indicated how Africa is set to enjoy growth in the residential property market and how the increased production and supply of wood protection products will continue to be driven by the residential end-user market.
Accoring to PWC, an increasing urban population will create huge demand for residential property across Africa fuelling the rise in demand for wood protection products.
They are used as disinfectants, repellents, additives for paints, varnishes, wood protection products
, insecticides and many other products.
In general, wood protection products
will achieve the best gains in interior wood applications, such as flooring and cabinets.
Additional financial support was provided by the Southern Pine Council of the Southern Forest Products Association, Unit Structures LLC, Wood Protection Products
, Inc., and Weyerhaeuser Company.
A separate global analysis by FMI on the wood coatings market said the growth of the residential property market will be the main driver of the wood protection products supply trends in the coming five years.
In Africa, projected growth in the housing market will be the main driver of increased use of wood protection products for the next five years.
While the examination of biocides used as wood protection products
and containing etofenprox (Commission Directive C(2008)530) indicates that they meet the requirements of the directive, certain risks to human health have nevertheless been identified, which make their use acceptable only on a seasonal and intermittent basis (up to three months per year).
Paint is the dominant wood protection product
used on siding, windows and doors, but stains and sealers are more widely utilized on cabinets, decks, furniture, and flooring.