H.I.G. Capital has agreed to sell its portfolio company Valtris Specialty Chemicals to SK Capital Partners.
Valtris is a producer and distributor of specialty chemical additives and precursors used in plastics, coatings, adhesives, sealants, pharmaceuticals, flavor and fragrances, and personal care products.
Valtris, led by CEO Paul Angus, is headquartered near Cleveland in Independence, Ohio, and operates nine manufacturing facilities across the United States, Europe, and Asia. Valtris was acquired by H.I.G. as a carve-out of the polymer additives division of Ferro Corporation in December of 2014.
“It has been a pleasure to work with H.I.G. since carving out the business from Ferro,” said Mr. Angus. “Together, we have built a strong global leader in polymer additives that is well-positioned for robust future growth. SK’s investment is a strong validation of our company and talented team and launches an exciting new chapter for Valtris.”
“We have enjoyed working with Paul and the entire Valtris team,” said Keval Patel, the head of U.S. middle-market private equity at H.I.G. “The successful outcome here is a direct result of execution of the plan that we set out to accomplish. We are proud of these achievements, which position the company well for continued success under SK Capital.”
H.I.G. specializes in providing debt and equity capital to small and medium-sized companies and invests in management buyouts, recapitalizations, and corporate carve-outs of both profitable as well as underperforming manufacturing and service businesses. The firm has over $49 billion of equity capital under management. H.I.G. was founded in 1993 and is headquartered in Miami with additional offices in New York, Boston, Chicago, Dallas, Los Angeles, San Francisco, and Atlanta.
“We have been thrilled with the partnership with Valtris’ management and the successful transformation from a North American focused business to a global market player,” said Matt Gullen, a managing director at H.I.G. “We see tremendous potential ahead for the company.”
The acquisition of Valtris follows SK’s May 2022 buy of Florachem, a Jacksonville, Florida-headquartered maker of citrus and pine-based solvents, bio-based cleaning products, aroma ingredients, citrus flavors, pine sap resins, and cottonseed oil-based dimer and trimer acids, from Carmelina Capital.
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.
Lazard was the lead financial advisor to H.I.G. on the sale of Valtris which is expected to close in the third quarter of 2022.
© 2022 Private Equity Professional | June 1, 2022
Skylark Private Equity Partners has formed USA Automotive Partners (USAAP) to invest in Caldwell Automotive Partners.
“CAP has consistently delivered high-quality service to the specific and customized needs of our law enforcement customers. We have already begun to execute our plans to scale our capabilities and operations so that we can continue to meet the needs of the law enforcement agencies and government customers that serve all of us every day,” said Mr. Hester.
“CAP has proven itself to be an industry leader and we are excited about the growth opportunities as CAP expands its production capacity and customer base both in and outside of Texas,” said Marshall Viney, a partner at Skylark. “Zach, Craig, and the entire CAP team have built tremendous relationships with law enforcement agencies and other government entities by providing exceptional customer service and leading upfit capabilities for their customers. We look forward to working alongside the CAP team to build upon this firm foundation.”
New State Capital Partners has completed the sale of Klein Hersh, an executive recruiting firm focused on the healthcare and life sciences industries, through an Employee Stock Ownership Plan (ESOP).
“Our 48 employees have grown the number of executives we’ve placed more than 150%, and together with New State, have been instrumental in doubling EBITDA in the less than 18 months,” said CEO Jason Hersh. “As an executive search firm, people are our business, and giving our employees the opportunity to enjoy the benefits that come with ownership is the epitome of that ethos. We look forward to continuing our work with New State to build on our success.”
“We are excited to offer Klein Hersh’s employees a meaningful opportunity to share in the value they have helped create,” said John Beauclair, a senior principal at New State. “The ESOP structure aligns with New State’s ESG goals, and we will continue to look for future opportunities to provide financing options that enhance employee ownership.”
NovaQuest Capital has held a final close of NovaQuest Private Equity Fund II LP (NQPE II) at its $500 million hard cap. The new fund had an original target of $425 million and was oversubscribed.
“We are grateful for the support we received from our existing limited partners, as well as strong demand from new investors for NQPE II,” said Michael Sorensen, a partner at NovaQuest. “As a continuation of the strategy we executed in our first fund, NQPE II will focus on investing in innovative companies in attractive thematic sectors and on partnering with talented management teams to build great companies.”
“NovaQuest has built a transformative investment platform that enables lower middle market healthcare companies to pursue strategic growth opportunities and enhance operational capabilities,” said Eric Deyle, a managing director at Eaton Partners.
Rowayton, Connecticut-headquartered