Sun Capital Partners has completed the sale of its portfolio company Emerald Performance Materials, a producer and marketer of specialty chemicals for niche consumer and industrial end-markets, to American Securities.
Emerald’s products enable end users to make goods that perform better through a variety of applications, such as adding color to paint and cosmetics, adding longevity to tires, imparting strength to adhesives and composites, providing scents to perfumes and soaps, and preserving soft drinks. The company serves a range of multi-billion dollar end markets such as flavors & fragrances, food & beverage, personal and household care, composites, structural adhesives, coatings, and flooring, among others. Emerald is based in Cuyahoga Falls, OH (www.emeraldmaterials.com).
Emerald was formed in May 2006 when Sun Capital Partners acquired six separate chemical businesses from Lubrizol. Since acquisition, a standalone infrastructure was put in place and manufacturing assets were reconfigured to optimize production capacity and focus on higher margin products. These efforts enabled Emerald to extend its product breadth and geographic reach through both organic growth and a series of strategic add-on acquisitions including CVC Specialty Chemicals and DSM Special Products.
“We’re extremely proud that by applying our deep experience in building corporate carve-outs into market leaders, Emerald has transformed into one of the top performers in the industry, achieving more than a three-fold increase in EBITDA while owned by a Sun Capital,” said Marc Leder, Co-CEO at Sun Capital. “We’re confident Emerald is poised for continued success under its new owner.”
Sun Capital Partners is focused on leveraged buyouts, equity, debt, and other investments in companies that can benefit from its in-house operating professionals and experience. Sun Capital has invested in and managed more than 335 companies worldwide with combined sales in excess of $45 billion since the firm’s inception in 1995. Sun Capital has offices in Boca Raton, Los Angeles, and New York as well as affiliates with offices in London, Paris, Frankfurt, Luxembourg, Shanghai and Shenzhen (www.SunCapPart.com).
“Significant investments in new plant equipment enabled the company to expand capacity at its Rotterdam, Netherlands and Kalama, Washington sites in order to meet increased customer demand,” said Jonathan Borell, Principal at Sun Capital. “Refocusing on higher margin specialty products and a commitment to investment in research and development has added more than 50 new products to Emerald’s portfolio in recent years. These initiatives have helped make Emerald a leading specialized chemical producer.”
American Securities invests in businesses with $500 million to $2 billion of revenues. Investments are undertaken with conservative financial structures that typically include only equity and senior debt. The firm aims to invest $150 million to $500 million of equity capital in each portfolio company. Sectors of interest include industrial manufacturing, specialty chemicals, aerospace and defense, energy, business services, healthcare, media, restaurants, and consumer products. The firm has more than $10 billion of capital under management and is currently investing from its sixth fund. American Securities has offices in New York and Shanghai (www.american-securities.com).
2014 PEPD • Private Equity’s Leading News Magazine • 8-4-14