Golden Gate Capital has acquired Active Minerals International from Merit Capital Partners. The senior management team of the company will retain a significant ownership stake in the business.
Active Minerals International (AMI) is a global producer and distributor of specialty industrial minerals, including kaolin and attapulgite clay minerals. The company’s products are used throughout the world for industrial, agricultural and construction related applications. The company was founded in 1964 and is headquartered north of Baltimore in Sparks, MD with regional offices in China, Taiwan, Mexico and Australia (www.activeminerals.com).
According to the company, AMI is the world’s largest supplier of gel quality attapulgite which is used in the paint and coatings, building products, oil well drilling mud, and agricultural sectors; and is the largest supplier of air-float kaolin which is used as a raw material in the fiber glass and ceramic industries. It is also used as a filler in the asphaltic roofing, rubber, adhesive, agricultural, construction and paper industries.
Merit Capital Partners invested subordinated debt and equity through its fourth fund to acquire the company in May 2007. Under Golden Gate ownership, AMI will continue to be led by its current management team, including President and Chief Executive Officer Dennis Parker. “We are excited to partner with Golden Gate Capital, who is fully aligned with our long-term strategic vision and has a demonstrated track record of building long-term value for its portfolio companies,” said Mr. Parker. “Golden Gate’s strong financial resources, combined with its deep experience in investing in industrial minerals companies, will enable us to accelerate our growth strategy and bolster our leading market positions in kaolin and gel quality attapulgite clay minerals.”
Golden Gate has been active in the specialty industrial minerals sector before. Past investments include US Silica (2008 to 2013), EP Minerals (2011 to 2018), ANGUS Chemical (2014) and ArrMaz Custom Chemicals (2013).
“Active Minerals represents a unique opportunity to invest in a compelling minerals platform with global scale,” said Dave Thomas, a Managing Director at Golden Gate Capital. “We have a deep appreciation for high quality industrial minerals franchises and experience in partnering with management to reinforce those strengths and accelerate growth. AMI’s market-leading products, access to high-growth end-markets, and commitment to customer service provide an excellent foundation for the business.”
Golden Gate invests in companies across a range of industries and transaction types, including going-privates, corporate divestitures, recapitalizations, and public equity investments. The firm has approximately $15 billion of capital under management and is based in San Francisco (www.goldengatecap.com).
Merit Capital, the seller of AMI, invests mezzanine and equity capital of $20 million to $60 million in companies with at least $5 million of EBITDA that are active in the manufacturing, distribution and services industries. The firm focuses on recapitalizations and buyout transactions, primarily in partnership with family-owned companies, existing owner-managers, and with independent sponsors. Merit is led by its founding partners Terrance Ship and Marc Walfish and is based in Chicago (www.meritcapital.com).
Milwaukee-based investment bank Grace Matthews (www.gracematthews.com) was the financial advisor to Merit Capital and The Valence Group (www.valencegroup.com) was the financial advisor to Golden Gate.
© 2018 Private Equity Professional | November 20, 2018
