EverZinc, a portfolio company of OpenGate Capital, has acquired G.H. Chemicals Ltd., and Microzinc Inc. (together GHC).
GHC is a Canadian manufacturer and exporter of French Process zinc oxide products. For industrial use, zinc oxide is produced using three methods: indirect process, direct process, and wet chemical process. The indirect process, also called the French Process (popularized in France in 1844), melts metallic zinc in a graphite crucible and then vaporizes it at 1000 °C. The zinc vapor reacts with the oxygen in the air to form zinc oxide particles which are then transported through a cooling duct and collected in a bagging facility.
GHC produces four grades of French Process zinc oxide that are used for pharmaceutical and food products, as well as fertilizer and feed grades, and various grades for rubber compounding. GHC was founded in 1974 and is based near Montreal in Saint Hyacinthe, QC (www.ghchemicals.com).
“The acquisition of GHC is a transformational investment for EverZinc that provides product and market expansion through world-class facilities in Quebec,” said Andrew Nikou, OpenGate Capital’s founder and CEO. “OpenGate’s strategy is to build both organic and inorganic growth for the businesses in which we invest. Earlier this year OpenGate launched OGx, a new digital optimization capability, to grow EverZinc and now GHC. Through the investment in GHC, and the OGx platform, we are confident that EverZinc’s global product offering will better serve its customers.”
In November 2016, OpenGate acquired Umicore Zinc Chemicals, a maker of specialty zinc chemicals, from parent company Umicore and upon closing of the acquisition renamed the company EverZinc.
EverZinc is a producer of zinc materials with four product lines: fine zinc powders, zinc oxide, ultra-fine zinc powder and zinc powders for batteries. The company’s products are used in a variety of applications including anti-corrosion paints, tires, pharmaceuticals and chemicals, ceramics and glass, sunscreen, and alkaline batteries. EverZinc produces more than 175,000 tons of materials at eight facilities in Belgium, the Netherlands, Norway, China and Malaysia. The company, led by CEO Vincent Dujardin, has more than 500 employees and is headquartered in Liège, Belgium (www.www.everzinc.com).
EverZinc acquired GHC from its owners Stephan Tabah and Philippe Bailet. “We are incredibly proud of completing this acquisition as the business provides many accretive aspects to EverZinc,” said Fabien Marcantetti, a managing director in OpenGate’s Paris office, who led the transaction. “Stephan and Philippe have driven many advancements at GHC and we are looking forward to working with them in the many months ahead.”
OpenGate acquires non-core divisions of larger corporations that have revenues from $50 million to $1 billion. The EBITDA of the divisions can be negative, break even, or positive. The firm was founded in 2005 and is headquartered in Los Angeles with an additional office in Paris (www.opengatecapital.com).
© 2019 Private Equity Professional | January 28, 2019
