Speyside Equity Advisers has completed the $45 million carveout of Reed Minerals from publicly traded Enviri Corporation (formerly Harsco Corporation).
Reed Minerals is a provider of abrasive blasting media used for surface preparation and roofing granules for roofing shingle manufacturing. The company’s abrasive products, sold under the Black Beauty brand, are known for their low dusting and low free silica attributes. These products are made using secondary materials and other industrial byproducts, including coal slag.
In surface preparation, low dusting and low free silica attributes are crucial for health, safety, and operational benefits. They reduce respiratory risks, such as silicosis, and improve visibility and efficiency during blasting. Less dust leads to reduced downtime, faster cleanup, and lower disposal costs, aiding in regulatory compliance and improving surface preparation quality.
Black Beauty products are used in a range of industrial and commercial applications, including the removal of surface coatings such as rust, paint, and scale from various substrates, especially structural steel and concrete. These substrates include bridges, ships, water tanks, offshore drilling rigs, oil field equipment, pipelines, marine equipment, railcars, and steel machinery.
Reed Minerals’ products are supported by its in-house research and development capabilities and consultative sales team. The company was founded in the 1930s and was acquired by Enviri Corporation (then Harsco Corporation) in 1983. Today the company is led by President and CEO Greg Andersen and is headquartered in Mechanicsburg, Pennsylvania, 80 miles north of Baltimore.
“We see Speyside as partners with whom we can work to usher in an entrepreneurial culture and investment in Reed Minerals,” said Mr. Andersen. “Speyside brings the new capitalization structure and value creation system needed to achieve our vision and drive results for our valued employees, suppliers, and customers.”
“The Reed Minerals deal begins a new chapter at Speyside, evidencing continuous improvement and focus applied to our third institutional fund,” said Eric Wiklendt, a managing director at Speyside. “With this acquisition, Reed Minerals can execute key product launches and acquisitions, thereby writing its next chapter of value creation.”
Speyside Equity makes control investments in middle-market businesses with revenues of less than $500 million and a history of profitability. Targeted portfolio companies often have balance-sheet, legal, environmental, labor, or transactional complexities causing financial or operational stress. Sectors of interest include specialty chemicals and minerals, metal forming and fabrication, plastics, building products, and food ingredients. Speyside focuses on transaction types such as spin-offs and carve-outs of large multinational businesses, industry consolidations, and family-owned businesses.
Speyside closed its first fund in April 2016 and is currently investing through its third institutional fund, Speyside Equity Fund II LP. The firm was founded in 2005 and is headquartered in Ann Arbor, Michigan, near Detroit.
Enviri (NYSE: EVRI) operates through two segments: Clean Earth, which offers environmental and regulated waste management services, and Harsco Environmental, which provides material processing and environmental services to the steel and metals industries. Enviri’s services include hazardous and non-hazardous waste treatment, contaminated soil remediation, and processing of steel mill by-products into value-added materials. Enviri is headquartered in Philadelphia and operates in more than 150 locations across over 30 countries.
Fifth Third Securities served as the financial advisor to Enviri on this transaction.
© 2024 Private Equity Professional | September 5, 2024
