Marwit Capital Partners has sold its portfolio company, Western Emulsions, to Idaho Asphalt Supply. Marwit acquired Western Emulsions in 2008 in partnership with Bob Koleas, CEO at the time and part of the founding family. Asphalt emulsions are used to extend the useful life of roads, highways and parking lots.
Western Emulsions is a manufacturer of asphalt emulsions and related products used for roadway pavement preservation, repair and restoration projects. Customers include: (i) federal agencies, such as DOT’s and others involved with roads, highways and airports; (ii) state and local agencies, such as county and municipal public works departments; (iii) private entities, such as general contractors; and (iv) intermodal consultation groups, such as government agencies who manage highway infrastructure. The company is based in Tucson (www.westernemulsions.com).
Under Marwit’s ownership, the business grew from two plants serving two states to six plants serving 15 states. Marwit’s activities included the construction of three new facilities, the closing of two add-on acquisitions, and the expansion of the company’s product line. These efforts resulted in a more than tripling of revenue and EBITDA during the ownership period.
According to Marwit, Western Emulsions is now the largest independent provider of asphalt emulsions for pavement preservation applications in the US. “We were fortunate to work with and assemble a strong management team at Western Emulsions, who shared our vision for building a leading company in the pavement preservation industry,” said Chris Britt, Marwit Managing Partner.
Marwit invests from$10 million to $40 million in companies that have enterprise values up to $100 million, revenues of $20 million to $200 million and EBITDA in the range of $4 million to $20 million. Sectors of interest include infrastructure; healthcare services; healthy living products and services; industrial products and services; business services; renewable resources; and retail and entertainment.
Idaho Asphalt Supply, the buyer of Western Emulsions, is a supplier of asphalt cements, emulsions, and polymer modified asphalts. The company was founded in 1973 and is headquartered in Idaho Falls, ID (www.idahoasphalt.com).
“Our investment in Western Emulsions exemplifies Marwit Capital’s strategy of working closely with the fund’s CEOs and management teams, through good times and challenging times, to generate successful investment outcomes that benefit the fund, our management partners, and our companies,” said Marwit Partner David Browne.
Marwit is managed by three partners, Chris Britt, Matthew Witte and David Browne, with human resource strategy and support provided across all portfolio companies by Carol Farrell. The firm has completed over 60 buyouts, recapitalizations and growth equity investments in its history. Marwit was founded in 1962 and is headquartered in Newport Beach (www.marwit.com).
© 2016 PEPD • Private Equity’s Leading News Magazine • 1-12-16
