Palo Duro Capital has partnered with Mario Toukan to form CCR Specialty Chemicals in order to acquire Crowley Chemical and its subsidiary Rusmar.
Crowley Chemical manufactures and distributes organic chemicals derived from petroleum derivatives and serves as a custom formulator of specialty aromatic oils bends used by compounders to extend aromatic polyurethanes, epoxy resins, aromatic based rubbers, PVC plastisols and unsaturated polyester resins.
The company was founded in 1920 and is headquartered in New York City with operating facilities in Ohio and Oklahoma (www.crowleychemical.com).
Rusmar is a specialty manufacturer and provider of aqueous foams and application equipment for emissions and odor control in the solid waste, environmental remediation and mining industries.
Rusmar is headquartered in West Chester, PA (www.rusmarinc.com).
“Crowley and Rusmar are recognized leaders in providing high-performance solutions to demanding end markets,” said Palo Duro Capital Partner Matthew Golden. “The management team has done an extraordinary job driving strong operational performance while continuing to extend the company’s reach into new applications.”
“The company has an excellent track record driven by a customer-centric focus and high-quality products, and we look forward to investing additional capital to support both organic growth initiatives and strategic follow-on acquisitions,” said Mr. Toukan. Mario Toukan has spent nearly 20 years as a chemical M&A banker and most recently was global head of chemicals, materials and packaging at KeyBanc Capital Markets. Prior to KeyBanc, he was with Barclays Capital and Arthur Andersen. In addition, he is an investor and board member of VersaFlex, an industrial coatings business based in Kansas City, KS.
“The management team at CCR is tremendously excited to partner with this team of seasoned specialty chemical investors,” said Bill Callanan, CCR CEO and Chairman. “We have an exceptional opportunity to accelerate growth and make investments in product formulations to provide tailored solutions for our customers. Mario and Matt’s reputation in the chemicals sector and track record for investing in and growing businesses is impressive. This makes them ideal partners for CCR and I am very excited to collaborate with them on this opportunity.”
Palo Duro Capital invests in lower middle-market companies that have $25 million to $150 million of revenue and $5 million to $25 million of EBITDA. Sectors of interest include specialty chemicals, industrial manufactured products, and commercial building products. The firm was founded in November 2017 and is headquartered in Dallas (www.palodurocapital.com).
“The combination of CCR’s best-in-class product portfolio and reputation for unparalleled customer service makes this an exciting platform investment,” added Phil Johnson, CCR President. “We look forward to executing a buy and build strategy to expand the company’s capabilities and accelerate growth.”
© 2018 Private Equity Professional | September 18, 2018
