Northwest Coatings Corp. is a leading developer and manufacturer of customized specialty ultraviolet (UV) and electron beam (EB) curable and water base coatings and adhesives servicing the tag and label, packaging, printing, textile, automotive and other industries. As an ISO 9001 registered company, Northwest Coatings is based in a suburb of Milwaukee, WI and has excelled through the years as a result of its dedication to quality, customer service and continuous technical innovation.
In a November 5, 2002 transaction, Northwest Coatings Corp. was acquired by Caltius Capital Management from a group of individual local investors. American Capital Strategies Ltd. (Nasdaq: ACAS) provided $12.5 million in senior subordinated debt and common and preferred equity. Additional financing was provided by Antares Capital, Northwest Coatings management, and the selling shareholders.
“We are backing a company with a strong industry reputation that has successfully capitalized on its technical leadership, strong customer relationships and the ability to develop formulations to meet specific customer needs while enjoying the growth in the energy-curable coatings and adhesives segment as well as several of their end-markets,” said American Capital Principal and Managing Director Jeri J. Harman. “We see Northwest’s seasoned management team continuing to expand their market presence and develop new, technologically advanced and environmentally friendly products.”
Founded in 1970, Northwest Coatings originally focused on manufacturing water base adhesives and coatings for regional industrial customers. During the early 1980’s, the company capitalized on a promising new market opportunity by focusing additional technical resources on ultraviolet (UV) curable products, which resulted in a greatly enhanced customer base and market position. 1988, the company’s founders sold Northwest Coatings to a group of local investors who have substantially grown the Company over the last 14 years.
Northwest Coatings customized products are used in a variety of applications. The Company’s coatings, including topcoats and release coatings, range from high gloss to matte and are formulated to achieve specific customer needs (i.e. scuff resistance, chemical resistance or release properties). The Company’s coatings are found on a wide range of products including labels, folding cartons, flexible packaging and industrial products. These coatings are customized to meet specific product characteristics that enhance product appearance, improve packaging durability, or meet other more technical requirements. The Company’s adhesives range from laminating to pressure sensitive and are used for such purposes as bonding clear films to printed and unprinted papers, foils, films and plastics. Product examples include laminated and pressure sensitive labels, folding cartons and niche industrial products.
Northwest Coatings operates in the $9 billion adhesives and coatings industry, specifically in the niche oriented sub-market of ultraviolet and electron beam curable and water base technologies. The overall ultraviolet and electron beam curable industry has experienced strong and steady growth which various industry sources estimate to be between 6% and 9% per annum. The Company has leveraged its pioneering work in the ultraviolet and electron beam curable coatings and adhesives markets as the migration from various other technologies (i.e. water and solvent base) to ultraviolet and electron beam curable technologies has continued and will likely continue to occur. The technology shift is attributable to the benefits of ultraviolet and electron beam curable technologies, including environmental friendliness, enhanced product performance characteristics such as increases in gloss, chemical and abrasion resistance, as well as lower energy and space requirements and faster throughput and quality control due to the instant cure time.
With innovative technical leadership, a dedicated and loyal customer and employee base, high quality and custom formulated products, and excellent customer service, Northwest Coatings will continue to stick with its successful business model to achieve greater levels of success.
