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CM Equity Partners eyes sale of GracoRoberts amid strong A&D demand

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CM Equity Partners, the private‑equity firm that bought Graco Supply & Integrated Services in 2015, is preparing to market its specialty‑chemicals arm, GracoRoberts, to potential buyers. The Arlington, Texas manufacturer serves aerospace and defense customers with high‑performance formulations. Harris Williams has been hired to steer the early stages of the sale, sources said.

Industry insiders expect the deal to fetch a double‑digit sale multiple on the company's $60 million EBITDA base, reflecting strong demand for niche chemicals in defense procurement. If the valuation holds, the transaction could rank among the larger specialty‑chemicals exits this year, offering CM Equity Partners a solid return on its eight‑year holding period.

Potential acquirers include strategic players seeking to deepen their A&D supply chains and financial sponsors attracted by recurring revenue streams. The sale process, slated for the next quarter, will test market appetite for mid‑size manufacturers with niche capabilities. A successful exit would free capital for CM Equity Partners to pursue new investments in the chemicals sector.

The move also signals broader consolidation trends as defense budgets tighten and suppliers aim to lock in long‑term contracts. Analysts note that firms with proven compliance records and specialized product lines, like GracoRoberts, command premium valuations. With the sale underway, investors will watch how valuation metrics compare with recent specialty‑chemical transactions.