Herndon Products, Inc. Announces Acquisition of Intercoastal, Inc.
Washington, D.C., November 2012 — HCI Equity Partners announces that Herndon Products, Inc. has acquired Intercoastal, Inc. Intercoastal, headquartered in Kent, Washington, is a distributor of consumable components to the international aerospace industry. For over 40 years it has supplied aerospace OEMs (primarily Boeing) and Tier 1 subcontractors with a wide variety of fasteners, clamps, grommets, hinges, and fittings. Importantly, Intercoastal possesses the coveted status as a Boeing D1-4426 authorized supplier, as well as 15 valuable authorized distributorships (12 of which are incremental to Herndon).
Intercoastal represents an attractive complimentary platform for Herndon. Specifically, the combination creates a more attractive business with a higher intrinsic value due to increased scale, enhanced diversification, and overall growth potential. Furthermore, management believes there is significant synergy opportunity through access to 12 incremental authorized distributorships which Intercoastal possesses.