Gemspring Capital has completed a single-asset continuation fund for Shrieve Chemical, a portfolio company under Gemspring’s ownership since December 2019.
The continuation fund, which acquired Shrieve Chemical, was organized with lead investor StepStone Group and included participation from a mix of new and existing investors, along with significant contributions from an affiliate of Gemspring and members of Shrieve’s management team. In addition to funds for the acquisition, the new fund also allocates capital for follow-on investments and other operational needs.
Shrieve Chemical is a distributor specializing in industrial chemicals, fluids, and specialty lubricants and operates across four divisions: Chemical Distribution, Specialty Lubricants and Enhancers, Energy Products and Services, and Custom Packaging.
Within its chemical distribution division, Shrieve supplies chemicals and ingredients to a diverse range of industries, including agriculture, energy, food, pharmaceuticals, personal care, mining, manufacturing, paint and coatings, paper production, refineries, and wastewater treatment. This division also provides toll manufacturing, import services, and a variety of chemical services, such as ammonia tank inspections and ammonia system maintenance, repair, and safety.
Shrieve’s energy products and services division supplies base oils and drilling fluid additives essential to drilling, production, transmission, and refining activities. The company’s custom packaging division is a certified packager of non-flammable liquids (using totes, drums, pails, and bottles), a blender of custom lubricants—including motor oils, refrigerants, and brake fluids—and a provider of logistical support services for finished products.
Serving over 1,500 SKUs from 600 suppliers in 40 countries across North America, Europe, the Middle East, and Asia, Shrieve supplies companies in the industrial, food ingredient, water treatment, agricultural, energy, and specialty lubricant sectors. The company’s infrastructure includes a sales network and over 50 global facilities, with key operating centers in the UK and China. Shrieve was founded in 1978 by Jim Shrieve and is headquartered in The Woodlands, Texas, near Houston.
“Gemspring and Shrieve have demonstrated a strong track record of success, and we’re pleased to support the company’s next stage of growth as it strengthens its position as a leading, value-added chemicals distributor,” said Adam Johnston, a partner at StepStone.
“With Gemspring’s operational and financial resources, we have entered new markets, added key personnel, bolstered our capabilities, and significantly enhanced our product offerings for customers while maintaining exceptional service,” said Shrieve CEO George Fuller. “We are excited to extend our partnership with Gemspring and secure additional capital to continue growing organically and through strategic acquisitions.”
StepStone, headquartered in New York City, is a global private equity firm managing over $169 billion in assets. The firm specializes in private equity funds, secondaries, co-investments, and mezzanine debt, with offices in six additional U.S. financial centers and international locations in Canada, Ireland, the United Kingdom, Luxembourg, Switzerland, China, South Korea, Brazil, and Australia.
“Gemspring has partnered with the talented team at Shrieve to implement a value creation plan that has driven an expansion of products, geographies, and capabilities to best serve Shrieve’s customers,” said Geoff Broglio, a managing director at Gemspring. “We are excited to continue on the growth journey with Shrieve and utilize additional financial resources to remain a consolidator of choice in the chemical distribution industry.”
Gemspring invests in companies with revenues of up to $500 million and focuses on sectors including aerospace and defense, business and consumer services, financial and insurance services, industrial services, software and tech-enabled services, healthcare services, and specialty manufacturing.
In January 2023, Gemspring closed two funds: Gemspring Capital Fund III LP, its third buyout fund, at $1.7 billion, and Gemspring Growth Solutions Fund I LP, its first non-control investment fund, at an oversubscribed $400 million. With these closings, Gemspring, based in Westport, Connecticut, now manages $3.4 billion in capital.
Jefferies and Moelis & Company served as financial advisors to Gemspring for this transaction.
© 2024 Private Equity Professional | November 8, 2024
