H.I.G. Continues Specialty Chemical Build

Vantage Specialty Chemicals, a portfolio company of H.I.G., has agreed to acquire the natural oils business of Textron Plimon.

Textron is a manufacturer, processor and formulator of natural oils for the personal care, food and chemical industries. The company’s product portfolio includes cosmetic oils, specially formulated plant oils sold under the EVOILS brand name, food oils, bismuth derivatives, cosmetic ingredients and preservatives. Textron was founded in 1980 by CEO Martin Lascorz and is headquartered near Barcelona in Granollers, Spain (click HERE for the Textron web page).

The distribution business of Textron Plimon is not part of this transaction and will remain with the prior ownership group and continue distributing products for Textron.

Vantage Specialty Chemicals is a supplier of chemical products used in personal care applications, industrial lubricants, chemical derivatives and other household and industrial products. The company’s more than 2,000 products include chemical ingredients for hair, skin, sun care and other cosmetic products; chemicals with applications in oil and gas, food production, lubricants, precision cleaning and other industry specialties; and oleochemicals which are chemicals derived from plant and animal fats.

The company is headquartered in Chicago and operates a global manufacturing and supply chain across 9 manufacturing facilities, 14 formulation laboratories and 19 distribution warehouses located in 14 countries across the United States, Latin America, South Africa, Europe, and Asia (www.vantagespecialties.com).

The buy of Textron is the fourth add-on acquisition that Vantage has completed since H.I.G. reacquired the company in October 2017. Vantage was first formed by H.I.G. in May 2008 through the acquisition of Croda International’s US oleochemical business. In January 2012, H.I.G. sold Vantage to The Jordan Company and then in October 2017 reacquired a majority equity interest in the company with The Jordan Company maintaining a minority equity interest.

Vantage’s three earlier add-on acquisitions were LEUNA-Tenside, a Leuna, Germany-based maker of specialty surfactants used in the personal care, soaps and detergents, industrial cleaning, lubricants, and paints and coatings markets (November 2018); The Amarna Company, a Delta, CO-based manufacturer of water-based release agents sold under the Amarnakote brand name (September 2018); and B&B Tritech, a Hialeah, FL-based manufacturer of chemical compounds and solutions used primarily by the aviation industry for cleaning, paint removal, and de-greasing of aircraft and aircraft components (April 2018).

“Textron significantly diversifies Vantage’s natural oils business beyond jojoba and establishes Vantage as a leading producer of high-quality, natural oils with unique supply chain, testing, and formulation capabilities,” said Keval Patel, a managing director at H.I.G. “We are excited to build upon Vantage’s European manufacturing footprint following the acquisition of LEUNA-Tenside last year as we continue to expand our specialty personal care business globally.”

“The acquisition of Textron supports our commitment to strategically grow and expand the value we bring our customers throughout the world in natural oils,” said Andy Harris, chief executive officer of Vantage. “This strategic combination builds upon Vantage’s existing leadership position in jojoba oil and further establishes Vantage and Textron as premier providers of natural oils to broaden and complement our specialty ingredient solutions for evolving trends in personal care and food.”

H.I.G. specializes in providing capital to small and medium-sized companies and invests in management-led buyouts and recapitalizations of manufacturing and service businesses. H.I.G. has more than $30 billion of capital under management. The firm is based in Miami with additional offices in New York, Boston, Chicago, Dallas, Los Angeles, San Francisco, Atlanta, London, Hamburg, Madrid, Milan, Paris, Bogotá, Rio de Janeiro, and São Paulo (www.higcapital.com).

The buy of Textron by Vantage Specialty Chemicals is expected to close by the end of June 2019.

© 2019 Private Equity Professional | April 4, 2019

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