MFG Chemical, a portfolio company of Platte River Equity, has acquired Gulf Bayport Chemicals. Platte River acquired MFG Chemical, a custom and toll manufacturer of specialty chemicals, in June 2017.
Gulf Bayport Chemicals (GBC) is a specialty chemical manufacturer of maleic anhydride-based chemicals (a colorless or white solid organic compound) that are used as curing agents for epoxy resins, starch modifiers, paper sizing, and as corrosion inhibitors. GBC also provides contract manufacturing, warehousing and transportation services. The company is headquartered in Houston and its production facility is based in Pasadena, TX (www.gulfbayport.com).
“GBC has developed a great reputation as a producer of maleic anhydride-based chemicals for customers in various end markets,” said CEO of GBC, John Nowlan. “We believe that our capabilities and customer and supplier relationships will complement MFG’s strong position in the specialty chemicals market.”
MFG Chemical is a specialty chemical manufacturer of polymers, surfactants and esters used in various applications in the oil field, water treatment, mining, coatings, agricultural and other industrial markets. MFG, led by CEO Keith Arnold, was founded in 1981 and is headquartered north of Atlanta in Dalton, GA (www.mfgchemical.com).
According to MFG, the buy of GBC gives the company a world-class chemical facility in an ideal location in the Houston ship channel area. The site benefits from direct rail access and an extensive utility infrastructure, providing MFG the opportunity to significantly expand its manufacturing capacity. “The acquisition of GBC expands MFG’s geographic footprint into the Gulf Coast, demonstrating a commitment to our customers in the region,” said Mr. Arnold. “We are excited about this acquisition and the growth opportunities it will provide to MFG in the future.”
Platte River makes equity investments of $20 million to $100 million in lower middle-market companies with enterprise values between $40 million and $250 million. The firm focuses on investing in the aerospace and transportation; energy and power; agriculture and chemicals; and metals and minerals. Platte River is based in Denver (www.platteriverequity.com).
© 2018 Private Equity Professional | March 16, 2018
