SK Capital Partners has acquired Niacet Corporation, a producer of specialty ingredients used in food, feed, and pharmaceutical applications.
Niacet is a producer of organic salts that are used for food preservation, antibiotic formulation, dialysis treatment and energy production in the food, feed, pharmaceutical, and technical industries. Niacet currently serves more than 300 customers in 57 countries and employs approximately 190 people. The company has two fully automated manufacturing sites, located in Niagara Falls, NY (headquarters) and Tiel, The Netherlands (www.niacet.com).
SK Capital is recapitalizing Niacet in partnership with Kelly Brannen, who will continue to serve as CEO and retain a significant stake in the company. The Brannen family purchased Niacet from Union Carbide in 1978 and grew the company, according to SK Capital, into the worldwide leader in its core products.
“The Niacet investment is consistent with SK Capital’s strategy of investing in niche market leaders in segments where we have significant industry, operating, and ownership experience and where we can be a strong value-added partner,” said Jack Norris, a Managing Director of SK Capital.
SK Capital specializes in the specialty materials, chemicals and healthcare sectors and typically invests equity of $100 million to $200 million in each portfolio company. SK Capital’s portfolio companies generate revenues of approximately $5 billion annually and employ approximately 8,000 people. The firm currently manages more than $1.9 billion of committed capital and is based in New York (www.skcapitalpartners.com).
KeyBanc Capital Markets (www.key.com) provided committed financing for the transaction. The Valence Group (www.valencegroup.com) – an investment bank specializing in the chemicals and materials sectors – was the financial advisor to Niacet.
© 2017 Private Equity Professional | February 7, 2017
