SK Capital Partners has acquired Florachem, a maker of plant-based ingredients, from Carmelina Capital.
Florachem is a manufacturer and supplier of citrus and pine-based solvents, bio-based cleaning products, aroma ingredients, citrus flavors, rosin (pine sap) resins, and bio-based dimer and trimer acids (made from cottonseed oil). The company’s citrus portfolio includes d-Limonene and d-Limonene alternatives, cold press orange oil, folded orange oil, and lemon and lime specialties. From pine, Florachem supplies various grades of terpineol, pine oil, dipentene, gum turpentine and camphene.
Florachem’s citrus and pine-based cleaning agents remove residues from precision parts, including circuit assemblies, wire and cable, aerospace parts, and medical devices. In addition to parts cleaning, Florachem’s products are also used as maintenance solvents for cleaning assembly and process equipment, such as stencils, industrial molds, and conveyors.
Florachem’s citrus, pine, and cottonseed materials are sourced from more than ten countries, and its products are used in the flavors and fragrances, personal care, industrial, coatings and adhesives sectors. The company, led by CEO Jon Leonard, was founded in 1988 and is headquartered in Jacksonville, Florida.
“We are extremely excited to partner with SK Capital, which shares our vision and strong values while bringing significant resources and relationships to the table,” said Mr. Leonard. “SK Capital is committed to helping Florachem grow its business and capabilities while protecting and enhancing our high-quality reputation in the industry.”
Florachem will soon complete the construction of a new 80,000 sq. ft., state-of-the-art, food-grade manufacturing facility in Lakeland, Florida, that will expand its production capacity, add new capabilities, and support the expansion of its natural citrus ingredient product line.
“Jon Leonard and his team have built a tremendously successful platform with an industry-wide reputation for customer service, reliability, and quality,” said Mario Toukan, a managing director of SK Capital. “We look forward to partnering with the Florachem team to continue to service its customer and supplier bases, expand the platform’s reach and capabilities, and accelerate growth.”
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.
“SK Capital has significant experience investing in ingredients businesses, and we believe we have found a great opportunity to partner with Jon Leonard and his team to build a leading natural ingredients platform,” said Jonathan Borell, a managing director of SK Capital. “With nearly 30 years of experience, Jon is a respected leader in his industry. We feel privileged to play a part in this ongoing story and to work closely with Florachem’s employees to bring further opportunities for growth and success to fruition.”
Carmelina Capital, the seller of Florachem, invests in North American-based, founder-led, and family-owned businesses that have at least $3 million in EBITDA. The Los Angeles-based firm was founded in 2010 by Kevin O’Malley and Troy Smildzins.
Stellus Capital Management provided committed debt financing for this transaction.
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