New Mountain Sells Chemical Maker

Mitsubishi Chemical (MCC), through its US subsidiary Mitsubishi Chemical America (MCA), has agreed to acquire Gelest, a portfolio company of New Mountain Capital.

Gelest is a maker of specialized organo-silicon compounds, metal-organic compounds, and silicone materials that are used in both commercial production and research and development in the life sciences, medical materials, pharmaceutical, diagnostics and separation science, personal care, and semiconductor sectors.

Gelest, led by chairman and CTO Barry Arkles, and CEO Ken Gayer, has 240 employees and is headquartered near Philadelphia in Morrisville, Pennsylvania.

“We are excited to join MCC during our next stage of growth,” said Mr. Gayer. “MCC’s breadth and depth in the advanced materials sector will allow Gelest to create even more value for our customers and opportunities for our employees.”

New Mountain acquired Gelest in March 2017 in partnership with the firm’s founder and management team.

“Since partnering with Gelest in 2017, we have been extremely impressed by the management team and Gelest’s ability to innovate continuously to serve the evolving needs of its demanding customers,” said Andre Moura, a managing director at New Mountain. “We are proud to have supported Gelest’s execution of an organic and inorganic growth strategy, and we thank everyone at Gelest for an exceptional partnership.”

New Mountain is an industry generalist and seeks to acquire just three or four companies each year, typically in the $100 million to $1 billion enterprise value range, and generally invests $100 million to $500 million per transaction. In September 2017, the firm held an oversubscribed hard cap close of its fifth private equity fund, New Mountain Partners V LP, with $6.1 billion of capital. New Mountain was founded in 1999 and is headquartered in New York City.

Tokyo-based Mitsubishi Chemical is Japan’s largest chemical company and was formed through the 2017 merger of Mitsubishi Chemical Corporation, Mitsubishi Plastics, and Mitsubishi Rayon Co. The company’s US subsidiary is headquartered in New York City and is led by President Steve Yurich.

Private Equity Professional | May 1, 2020

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