SK Adds to Tilley with Buy of Ingredients Solutions
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SK Adds to Tilley with Buy of Ingredients Solutions

This add-on is the first in Tilley’s history and comes after the acquisition of the company by SK Capital in December 2020

Ingredients Solutions is the world’s largest independent supplier of Carrageenan, a carbohydrate that is extracted from red edible seaweeds

SOURCE: Getty Images

Tilley Company, a distributor of specialty chemicals and lubricants and a portfolio company of SK Capital Partners, has acquired Ingredients Solutions.

Ingredients Solutions (ISI) is a distributor and blender of specialty hydrocolloids – water-based fluids or gels that include evenly dispersed microscopic substances. The company’s products are used in dairy, meat and poultry, plant-based food and beverages, sauces and dressings, bakery, pet food and pharmaceutical applications.

ISI considers itself to be the world’s largest independent supplier of Carrageenan, a carbohydrate that is extracted from red edible seaweeds including Chondrus crispus (Irish moss) and used in the food industry for its gelling, thickening, and stabilizing properties. Other products include Sodium Alginate, Pectin, Locust Bean Gum, Tara Gum, Agar-Agar, Gellan Gum and Xanthan Gum.

ISI was founded in 1992 and is headquartered near Bangor in Waldo, Maine with additional warehouses in Missouri, California, and Ontario.

Tilley Company is a value-added distributor of specialty ingredients and lubricants. The company’s ingredients are used in food and beverages, flavors and fragrances, personal care, pet foods and feed, and life science and pharmaceutical markets. Tilley’s automotive, industrial, and commercial lubricants include motor oils, diesel exhaust fluids, degreasers, solvents, cleaners, anti-freeze coolants, and food-grade lubricants.

The company’s services include regulatory, technical and quality support; custom formulation and blending; and packaging. Baltimore-headquartered Tilley, led by CEO Sean Tilley, was founded in 1952 and operates two facilities in Maryland.

“Tilley Company is extremely pleased to welcome ISI’s Waldo, Maine R&D laboratory and hydrocolloid specialists into the Tilley family,” said Mr. Tilley. “Ingredients Solutions brings a leading hydrocolloid offering and best-in-class product application know-how to meet the precise needs of food, beverage, and personal care customers. Furthermore, this acquisition fits our strategic M&A plan by enhancing Tilley’s food and beverage ingredient product solutions, while also expanding geographic access.”

The combination of Tilley and ISI creates one of the largest independent distributors of hydrocolloids in North America. The add-on acquisition of ISI is the first in Tilley’s history and comes shortly after the acquisition of the company by SK Capital in December 2020.

SK Capital invests in the specialty materials, chemicals and pharmaceutical sectors and typically invests equity of $100 million to $200 million in each portfolio company. In February 2019, the firm held a final closing of SK Capital Partners Fund V LP with total capital of $2.1 billion. SK Capital was co-founded by Barry Siadat and Jamshid Keynejad and is based in New York City.

Madison Capital provided committed debt financing to support the buy of ISI by Tilley.

© 2021 Private Equity Professional | September 8, 2021

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