SK Capital has acquired the fire safety and oil additives businesses of Israel Chemicals and has renamed the acquired businesses Perimeter Solutions.
Perimeter Solution’s fire safety business supplies chemicals and services for fighting wildfires and foams to extinguish fires. The company’s oil additives business provides phosphorus pentasulfide, an inorganic compound that is used in lube oil additives, pesticides and mining chemicals. Perimeter is headquartered in St. Louis (www.perimeter-solutions.com). In the 12 months ended September 30, 2017, the two units contributed $294 million to Israel Chemicals’ sales and $112 million to operating income.
“We are excited to partner with SK Capital, a firm which uniquely understands our business and industry,” said Edward Goldberg, CEO of Perimeter. “We look forward to continuing our tradition of being a trusted and reliable partner to our customers and communities we serve, while further investing in Perimeter to accelerate our growth in new geographies and channels to market.”
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. The firm’s portfolio companies generate revenues of approximately $6 billion annually and employ approximately 8,800 people. SK Capital has more than $2.2 billion of assets under management and is based in New York (www.skcapitalpartners.com).
“Perimeter is an industry leader with an uncompromising commitment to the highest quality, safety, and reliability standards. The transition from a non-core business within a public company to a standalone organization will enable a renewed emphasis on investment and growth,” said Aaron Davenport, a Managing Director of SK Capital. “We look forward to growing and developing the company alongside management in the years to come.”
Israel Chemicals (NYSE: ICL) is a multi-national manufacturer of fertilizers, metals and other special-purpose chemical products. The company has annual revenues in excess of $5 billion and is headquartered in Tel Aviv (www.icl-group.com).
The Valence Group, Rothschild & Co. and HSBC Securities were the financial advisors to SK Capital. Debt financing was arranged by Barclays, Goldman Sachs USA, and HSBC Securities.
© 2018 Private Equity Professional | March 29, 2018