Wynnchurch Capital has acquired Reagent Chemical & Research in partnership with members of the company’s senior management team.
Family-owned Reagent Chemical & Research is a specialty distributor of hydrochloric acid and sodium hydroxide (also knows as lye or caustic soda). The company was founded in 1959 by Tom Skeuse, Sr., and is headquartered 44 miles north east of Philadelphia in Ringoes, New Jersey.
Hydrochloric acid (HCL) is often produced as a byproduct of other chemical manufacturing processes, particularly those involving the production of chlorine gas. Reagent’s chemical manufacturing suppliers sell their HCL byproducts to Reagent who distributes the HCL to its customers that operate across a variety of industrial end markets.
Hydrochloric acid is used in the production of other industrial chemicals, food and steel processing, water treatment and energy production. The company’s caustic soda products are used in the manufacturing of soaps and detergents, pulp and paper, water treatment, and textiles.
Part of Reagent’s value proposition to its suppliers and customers is its border-to-border and coast-to-coast national infrastructure network comprised of specialized terminals, railcars, trailers, storage tanks, and pipelines. Reagent owns and operates hundreds of trucks and trailers, and thousands of railcars that are dedicated to servicing its customers and HCI suppliers. According to Reagent, it is the largest marketer of hydrochloric acid in the United States.
“Reagent has established itself as a critical and reliable partner to its suppliers and customers,” said JD Frank, a principal at Wynnchurch. “The company is renowned for its high service levels and excellent safety track record. We look forward to building upon that reputation and supporting the Reagent team through the next phase of growth.”
“Over its 65-year history as a family-owned business, Reagent has established itself as the preeminent specialty distributor of hydrochloric acid, with a relentless focus on safety as well as customer and supplier service,” said Rob Lippert, the CEO of Reagent. “As we transition into our next chapter of growth, Wynnchurch’s founder- and management-friendly approach made them the ideal partner.”
“We have been highly impressed with Reagent’s unique value proposition, long-standing relationships, vast distribution infrastructure, and market leadership position,” said Brian Crumbaugh, a partner at Wynnchurch. “We are excited to partner with Rob and the Reagent team to continue their long track record of success.”
Wynnchurch makes investments in middle-market companies that have revenues of $50 million to $1 billion with specializations in recapitalizations, growth capital, management buyouts, corporate carve-outs, and restructurings. Sectors of interest include aerospace, defense and government; building products and materials’ consumer and food; manufacturing, industrial and transportation; and business services and distribution.
In January 2024, Wynnchurch closed its sixth private equity fund, Wynnchurch Capital Partners VI LP, with $3.5 billion of committed capital. Wynnchurch was founded in 1999 and is headquartered in the Chicago suburb of Rosemont with additional offices in Los Angeles (El Segundo) and New York City.
Deloitte Corporate Finance was the financial advisor to Reagent on this transaction.
© 2024 Private Equity Professional | May 9, 2024
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