Recochem Switches Sponsors

Recochem Switches Sponsors

After a five-year hold and five add-ons, H.I.G. sells Recochem to CapVest

Recochem is a manufacturer of branded, private label and bulk automotive aftermarket and household fluids used in consumers and industrial applications.

SOURCE: Getty Images

H.I.G. Capital has sold Recochem, a provider of industrial and household fluids, to CapVest Partners. H.I.G. will maintain a minority equity interest in Recochem in partnership with CapVest.

Recochem is a manufacturer of branded, private label and bulk automotive aftermarket and household fluids used in consumers and industrial applications. The company’s products include windshield wiper fluids, engine coolants, diesel exhaust fluid, paint thinners, solvents, and other specialty chemicals sold in general merchandise, automotive aftermarket, and home improvement retailers worldwide.

Source: Recochem

Recochem, with revenues of more than $1 billion, is led by CEO Shawn Davies and is headquartered in Montreal.

“H.I.G. has been an outstanding partner to Recochem and instrumental in helping us execute on our strategic vision,” said Mr. Davies. “H.I.G. added significant value to our business and our leadership team while supporting investments across the company, all of which have strengthened our ability to deliver high-quality products and best-in-class service to our customers. We are excited to partner with CapVest to support Recochem’s next phase of growth. Their track record, expertise, and experience make CapVest an ideal partner for us as we pursue our ambitious plans for the future.”

Recochem was acquired by H.I.G. from Swander Pace Capital in August 2018. During its ownership term, Recochem expanded its product categories and service geographies both organically and through add-on acquisitions.

These add-on acquisitions include Auto-Chem, a Quebec-based provider of interior and exterior automotive cleaning products (February 2020); Adams Polishes, a Colorado-based provider of car shampoos, protectors, polishes and ceramic coatings (April 2020); KOST USA, an Ohio-based maker of private label and branded coolants and antifreezes (December 2020); Paint Over Rust Products, a New York-based maker of metal restoration and rust preventative products (January 2021); and Torque Detail, a Connecticut-based provider of automotive detailing products (December 2022).

“It’s truly been a pleasure working with the Recochem management team these past five years. They have done an exceptional job transforming the business into larger, stronger and more diversified company with multiple levers of growth,” said Keval Patel, a managing director at H.I.G. “Recochem is a world class company with great leadership and exciting growth prospects. We look forward to participating in the company’s future success.”

“We see significant strategic opportunities for Recochem to capitalize on in the future and look forward to working with the Recochem management team to continue to realize the company’s tremendous potential,” said Timothy Colson, a partner at CapVest. “The company is well positioned to continue expanding both organically and through strategic mergers and acquisitions, which will drive growth and benefit its customers by making an even wider portfolio of high-quality products and solutions available to them.”

CapVest is a European mid-market private equity firm that was founded in 1999 and is headquartered in London with additional offices in New York and Dublin.

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 $59 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.

Harris Williams, Robert W. Baird, and CG Sawaya Partners were the financial advisors to Recochem on this transaction; and Jefferies, Truist Securities, and Lincoln International advised CapVest.

© 2023 Private Equity Professional | November 8, 2023

To search in site, type your keyword and hit enter