“Our investment in QC provides a platform for the company to enhance its already exceptional products and accelerate its growth trajectory. We see tremendous potential in QC’s granular micronutrients business and believe QC can leverage cross-portfolio synergies from our agribusiness companies, specifically Verdesian Life Sciences, which focuses on plant health and specialty nutrition,” said Angelos Dassios, Partner of Paine & Partners. “We look forward to working with QC to capitalize on new market opportunities and realize QC’s significant potential.”
QC is a producer and supplier of granular and dry micronutrients and ferrous sulfate products. Ferrous sulfates have uses in fertilizers and animal feed, soil remediation and land reclamation, hazardous waste and water treatment, and chemical process industries. QC currently has two independent ferrous sulfate operations, located in Cape Girardeau, MO and North Lima, OH. The company was founded by Don Gordon in 1971 and is headquartered in Baltimore (www.qccorporation.com).
The Gordon family will continue to lead the day-to-day operations of the business. Don Gordon has been appointed Chairman of the Company. Jason Gordon, Don’s son, has been appointed Chief Executive Officer. Jason has almost 20 years of experience working at QC and has served as the company’s President, Chief Operating Officer, Chief Financial Officer, and Vice President of Sales & Marketing, among other roles.
“Paine & Partners is committed to providing QC with the necessary capital, expertise and resources to accelerate the granular micronutrient expansion strategy that is already in progress,” said Don Gordon, Chairman. “Over the past forty years, we have built QC into a leading supplier of ferrous sulfate and granulated fertilizer micronutrients. We believe our partnership with Paine & Partners will enhance our industry leading products while maintaining our company’s strong core values. I look forward to working with Paine & Partners and the entire QC team as we continue to build on our success.”
Paine & Partners provides equity capital for management buyouts, going private transactions, and company expansion and growth programs. The firm currently makes investments through its $1.2 billion fund, Paine & Partners Capital Fund III, LP. Paine & Partners has offices in San Mateo, CA; New York, NY and Chicago, IL (www.painepartners.com).
“The investment from Paine & Partners will facilitate our continued growth and help us reach our goals across the business, particularly in granular micronutrients. Paine & Partners has a strong background in agribusiness and plant nutrition, and we look forward to taking the business to the next level with them,” said Jason Gordon, CEO.
Related to the transaction, QC and Paine & Partners worked with SDA Ventures (www.sdaventures.com), a consulting firm focused on corporate development, business acquisition, customer relations, growth strategies and corporate finance in the health and wellness and nutrition sectors.
“We have a long-term relationship with Steve Dubin and David Abramson, the principals at SDA and former CEO and President of Martek Biosciences,” said Kevin Schwartz, President of Paine & Partners. “Through their relationship with Don Gordon, we were introduced to QC and became excited about its opportunities for growth. SDA contributed strongly to our successful completion of this transaction.”
© 2014 PEPD • Private Equity’s Leading News Magazine • 5-12-14