MIAMI–(BUSINESS WIRE)–#CarveOutTransaction–H.I.G. Capital (“H.I.G.”), a leading global alternative investment firm with over $49 billion of equity capital under management, is pleased to announce that it has signed an agreement to sell its portfolio company Valtris Specialty Chemicals (the “Company” or “Valtris”) to an affiliate of funds managed by SK Capital Partners (“SK Capital”).
Valtris is a leading manufacturer of specialty polymer additives and specialty chemicals for a diverse set of end markets. The Company’s products impart critical performance characteristics, including flexibility, stability processability, and flame retardance, to plastics and other materials. Valtris is recognized worldwide for its reliability as a critical global supplier to a diverse customer base with longstanding relationships based on its reliability, quality and product innovation over its 80+ year history. Headquartered in Independence, OH, the Company operates nine manufacturing facilities globally.
After a successful carve-out transaction from Ferro Corporation in late 2014, H.I.G. collaborated with management to expand the Company’s geographic reach, customer breadth and product portfolio through the acquisition of Akcros Chemicals in the US and UK in 2016 and multiple INEOS Enterprises business units in France, Belgium and the Netherlands in 2018. Additionally, the Company made significant investments in management, sales & marketing and new product development which resulted in EBITDA tripling during H.I.G.’s ownership.
Paul Angus, Valtris’ CEO, said, “It has been a pleasure to work with H.I.G. since carving out the business from Ferro. Together, we have built a strong global leader in polymer additives that is well-positioned for robust future growth. SK’s investment is a strong validation of our Company and talented team and launches an exciting new chapter for Valtris.”
Keval Patel, Head of U.S. Middle Market Private Equity and Head of North American Chemicals at H.I.G., commented, “We have enjoyed working with Paul and the entire Valtris team. The successful outcome here is a direct result of execution of the plan that we set out to accomplish. We are proud of these achievements, which position the Company well for continued success under SK Capital.”
Matt Gullen, Managing Director at H.I.G., added, “We have been thrilled with the partnership with Valtris’ management and the successful transformation from a North American focused business to a global market player. We see tremendous potential ahead for the Company.”
Lazard Middle Market was lead financial advisor to H.I.G., and McDermott Will & Emery LLP served as legal advisor to H.I.G. and Valtris Specialty Chemicals in connection with the transaction. Piper Sandler also served as a financial adviser. The transaction is expected to close in Q3 2022 and is subject to customary closing conditions.
About Valtris Specialty Chemicals
Valtris Specialty Chemicals, based in Independence, OH, is a leading manufacturer of specialty chemicals primarily used as additives in the production and processing of plastics. These chemicals impart critical attributes to plastics including resiliency, flexibility and ease of processing. Valtris operates nine manufacturing facilities globally across the US, Europe, and Asia. For more information, visit http://www.valtris.com/.
About H.I.G. Capital
H.I.G. is a leading global alternative assets investment firm with over $49 billion of equity capital under management.* Based in Miami, and with offices in New York, Boston, Chicago, Dallas, Los Angeles, San Francisco, and Atlanta in the U.S., as well as international affiliate offices in London, Hamburg, Madrid, Milan, Paris, Bogotá, Rio de Janeiro and São Paulo, H.I.G. specializes in providing both debt and equity capital to small and mid-sized companies, utilizing a flexible and operationally focused/ value-added approach:
- H.I.G.’s equity funds invest in management buyouts, recapitalizations and corporate carve-outs of both profitable as well as underperforming manufacturing and service businesses.
- H.I.G.’s debt funds invest in senior, unitranche and junior debt financing to companies across the size spectrum, both on a primary (direct origination) basis, as well as in the secondary markets. H.I.G. is also a leading CLO manager, through its WhiteHorse family of vehicles, and manages a publicly traded BDC, WhiteHorse Finance.
- H.I.G.’s real estate funds invest in value-added properties, which can benefit from improved asset management practices.
- H.I.G. Infrastructure focuses on making value-add and core plus investments in the infrastructure sector.
Since its founding in 1993, H.I.G. has invested in and managed more than 300 companies worldwide. The firm’s current portfolio includes more than 100 companies with combined sales in excess of $30 billion. For more information, please refer to the H.I.G. website at www.higcapital.com.
* Based on total capital commitments managed by H.I.G. Capital and affiliates.
Head of U.S. Middle Market Private Equity
Head of North American Chemicals