Huron Capital Buys 5th Specialty Coatings Company

Quest Specialty Chemicals buys Zolatone Automotive to expand Automotive Aftermarket Presence

DETROIT, Aug. 28 -- Huron Capital Partners LLC announced today that through its portfolio company, Quest Specialty Chemicals, Inc. ("Quest"), it has acquired Zolatone Automotive ("Zolatone"). Zolatone will be managed under Quest's Automotive Aftermarket Unit, Matrix System Automotive Finishes (based in Walled Lake, MI) and relocate its operations to Quest facilities in Michigan and Wisconsin. Zolatone manufactures and markets high- performance acrylic sealers, base coats, top coats and other coatings to automotive refinish and paint distributors across the U.S. for sale to collision &body shops. Terms of the transaction were not disclosed.

The acquisition marks the 5th specialty chemical company that Huron has acquired through its Quest platform, and 30th overall since the inception of the firm. Huron formed Quest in 2004 in partnership with specialty chemical industry executives Fred Quinn and Gerry Loftus, and long-time chemical industry investor Carol Bramson. Through a series of synergistic add-on acquisitions and significant organic growth, Quest revenue has grown 4-fold during the past three years to over $80 million, making it one of the top 20 diversified coating companies in the U.S.

Commenting on the transaction, Michael R. Beauregard, a partner at Huron, stated "The Zolatone transaction strategically adds to Matrix's array of refinish solutions in the automotive aftermarket. The transaction deepens Quest's positioning of its core Automotive Aftermarket Unit, which together with Quest's Industrial & OEM Unit and Construction Unit, form a diversified specialty chemicals business serving several international markets. Huron looks forward to committing additional equity capital to Quest as it continues to execute its buy & build strategies."

About Huron Capital Partners LLC

Huron Capital is a leading private equity firm investing in lower middle- market companies. The firm typically invests between $10 million and $40 million in equity to sponsor management buyouts, growth initiatives, recapitalizations, and corporate spin-offs of well-positioned companies having revenues up to $200 million. Through its operational approach, Huron's strategy is to partner with strong management teams at niche manufacturing, specialty service, and value-added distribution companies that can be built through acquisition and organic growth.

In the past 12 months, Huron has completed acquisitions in the areas of commercial printing, pre-fabricated staircases & parts, ground passenger transportation services, specialty chemicals, laboratory testing services, building products and office furniture components. Huron was also active on the divestiture front, selling four businesses for a combined IRR in excess of 80%. Huron expects to continue its strong momentum in the second half of 2007 with additional platform and add-on acquisitions in the third quarter.

Huron Capital manages $257 million through two private equity funds, The Huron Fund, L.P. ($72 million, 2000) and The Huron Fund II, L.P. ($185 million, 2005). Since its founding in 1999, Huron has acquired or invested in 30 companies and has generated a realized IRR exceeding 65% for its Limited Partners. Huron has committed over 75% of its latest fund and is aggressively seeking new investment opportunities.