CenterOak Partners has acquired Aakash Chemicals and Dye-Stuffs, Inc. (Aakash Chemicals). CenterOak invested in the company with capital from its $420 million CenterOak Equity Fund I, LP which closed in August 2016.
Aakash Chemicals is a manufacturer and distributor of pigments, colorants, resins, additives, dyes and other specialty chemicals used in the plastics, coatings and graphic arts end markets. The company exports to more than 50 countries globally and manufactures its products through both company owned and joint venture facilities in the US, India and China. Aakash Chemicals, founded in 1978, is led by CEO Aakash Shah (the son of the founder) and is based in Chicago suburb of Glendale Heights, IL (www.aakashchemicals.com).
Mr. Shah will retain an equity interest in the company and will remain in his current role as Chief Executive Officer under CenterOak ownership. “CenterOak’s investment facilitates an ownership transition for our family members and provides capital to expand operations and enter new markets,” said Mr. Shah. “We are impressed by CenterOak’s history in growing businesses – both organically and through add-on acquisitions – and look forward to leveraging CenterOak’s expertise to expand our product offering and market coverage.”
“CenterOak has a longstanding history of investing in family-owned and closely-held businesses to support their growth and facilitate succession planning,” said Randall Fojtasek, Managing Partner of CenterOak. “Aakash Chemicals represents a compelling opportunity to partner with a strong management team in the large and highly fragmented specialty chemical distribution industry. The CenterOak team has significant expertise in the distribution and chemicals space, as demonstrated by our proven track record. Aakash Chemicals’ attractive characteristics coupled with CenterOak’s experience create an ideal platform for continued success.”
CenterOak makes equity investments of $20 million to $90 million in companies with enterprise values of $50 million to $200 million. Sectors of interest include: distribution; outsourced industrial services; building products; specialty coatings, chemicals and adhesives; active, outdoor and lifestyle apparel and accessories; food and restaurants; specialty retail; health and personal care; pet products and services; technology-enabled services; information services; and marketing and professional services. The firm invests in companies across the US but has a specific focus on the Southwest and South. CenterOak is based in Dallas (www.centeroakpartners.com).
© 2017 Private Equity Professional | February 1, 2017
