PMC Sells StyroChem to Epsylite

PMC Capital Partners has sold StyroChem Canada to Epsilyte Holdings, a portfolio company of Balmoral Funds. PMC acquired StyroChem Canada from WinCup in August 2019.

StyroChem’s expanded polystyrene (EPS) products are used in foodservice, packaging, construction, casting and other specialty applications.

StyroChem was founded in 1975 as Expandable Technologies and was one of the first manufacturers of EPS for foodservice applications. Today, the company is led by CEO Glenn Wredenhagen and is headquartered near Montreal in Baie-D’Urfé, Canada.

“We are proud to have supported StyroChem’s management team’s vision for growth over the last few years and are pleased to have been part of creating an extensive line of EPS solutions to the foodservice, packaging, construction, casting and specialty applications with StyroChem. As we exit the investment, we wish the StyroChem team continued growth and success,” said Michel Tamer, a managing partner of PMC Capital.

Epsilyte is a producer of expandable polystyrene resin that is used in building insulation, cold-chain packaging, and personal safety equipment. In October 2020, Balmoral, in partnership with industry veteran Brad Crocker, acquired the Peru, Illinois-based expandable polystyrene business of Flint Hills Resources, a subsidiary of Koch Industries. At closing, the business was renamed Epsilyte.

According to Balmoral, Epsilyte’s buy of StyroChem creates one of the largest producers of EPS in North America with three production facilities and more than 300 employees.

“Our advanced materials are already key enablers of carbon neutrality due to their almost unmatched insulative properties. This acquisition further strengthens our ability to enhance our portfolio through StyroChem’s unique and efficient operational technology enabling us to better serve customers with more sustainable products and true value creation,” said Mr. Crocker.

“This acquisition enables Epsilyte to leverage its resources to continue improving its business and expanding its product portfolio. We are excited about the prospects to improve our ESG message and performance based on this exciting combination,” said David Shainberg a managing director at Balmoral.

Los Angeles-headquartered Balmoral invests in corporate carve-outs, restructurings and other special situations. The firm targets investments of $10 million to $60 million of equity in companies that have $30 million to $350 million of revenues.

PMC Capital Group is part of PMC Global, a multinational conglomerate that operates businesses in the chemical, liquefied natural gas, pharmaceutical, plastics, packaging, construction, financial, machinery and fabrication, and health and beauty industries. PMC Capital, founded in 2019 and based near Los Angeles in Sun Valley, California, invests in corporate carve-outs, recapitalizations, and founder-owned companies in the TMT, consumer, healthcare, business services and industrial sectors.

© 2021 Private Equity Professional | October 12, 2021