fertilizers

Platte River Buys Tiger-Sul Products

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Platte River Equity has acquired Tiger-Sul Products, provider of sulphur fertilizers and crop performance products, from H.J. Baker which has owned the company since 2005 and will retain a minority equity position.

Tiger-Sul is a manufacturer, importer and exporter of sulphur bentonite, sulphur bentonite micronutrients technology, and other crop performance products.  Sulphur Bentonite is a 90% pure elemental form of sulphur. It provides degradable sulphur to plants and is a key nutrient that improves the metabolism of nitrogen, phosphorus and potassium. Tiger-Sul is headquartered in Shelton, CT (near New Haven) and has operating facilities in Atmore, AL; Stockton, CA; Irricana, AB; and Shanghai, China (www.tigersul.com).

“For more than 50 years, Tiger-Sul has been providing farmers around the globe with high quality sulphur bentonite and micronutrient fertilizers, pushing the boundaries of innovation in the industry,” said Don Cherry, CEO of Tiger-Sul. “Platte River has the resources and experience to help us accelerate the company’s growth in the global market.”

“We were attracted to Tiger-Sul because of its reputation in the agriculture industry for superior products and a consistent ability to deliver product innovations to address the needs of its end customers,” said Kris Whalen, Managing Director of Platte River.

Platte River makes equity investments of $20 million to $80 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 industrial products and services; and chemicals, metals, minerals and agriculture sectors. Platte River is based in Denver (www.platteriverequity.com).

The investment in Tiger-Sul was made by Platte River out of its third fund, Platte River Equity III, LP.

© 2016 Private Equity Professional | December 21, 2016

Paine & Partners Closes Buy of QC Corporation

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Verdesian Life Sciences, a portfolio company of Paine & Partners, has completed its previously announced acquisition of QC Corporation.

QC is a producer and supplier of granular and dry micronutrients and ferrous sulfate products.  Ferrous sulfates have uses in fertilizers and animal feed, soil remediation and land reclamation, hazardous waste and water treatment, and chemical process industries.  QC currently has two ferrous sulfate operations, one located in Cape Girardeau, MO and the other in North Lima, OH.  The company was founded by Don Gordon in 1971 and has been family owed for 42 years.  QC is headquartered in Baltimore (www.qccorporation.com).

“This combination advances Verdesian’s position as a market leader with innovative product solutions along with a deep pipeline of next generation technologies for the specialty and agricultural markets globally,” said Kevin Schwartz, President of Paine & Partners. “QC is an established market leader in the fast-growing micronutrients category.  We expect that the combination will bring QC’s expertise increasingly into Verdesian’s core agricultural markets, while QC’s lawn & garden and turf & ornamental customers will see new applications for Verdesian’s proprietary products.”

Paine & Partners formed Verdesian Life Sciences in September 2012 to focus on investments in plant health and nutrition.  The acquisition of QC is the sixth add-on acquisition completed by Verdesian. The other five add-ons completed by Verdesian are: Specialty Fertilizer Products (July 2014); INTX Microbials (September 2013); Plant Syence (April 2013); Northwest Agricultural Products (February 2013); and Biagro Western Sales (September 2012).

As a result of these investments Verdesian Life Sciences offers patented biological, nutritional, seed treatment and inoculant technologies for high-value specialty crops, row crops and turf and ornamental markets. Verdesian’s plant-health products, nutritional catalysts and seed treatments/inoculants are used by farmers to efficiently maximize crop yields. The company is based in Cary, NC (www.VLSci.com).

“We are excited to welcome QC and its micronutrient platform, including its unique Nutripaction compaction granulation technology, to Verdesian,” said JJ Grow, Chief Executive Officer of Verdesian. “The Gordon family and the rest of QC’s employees share our commitment to researching and developing innovative and proven yield enhancing plant-health products.”

Paine & Partners invests globally in the food and agribusiness industries.  The firm is currently investing through its $1.2 billion third fund, Paine & Partners Capital Fund III, LP.  In addition to Verdesian and QC, in its current fund, Paine & Partners has invested in (1) Costa Group, Australia’s largest integrated grower, packer and marketer of fresh fruits and vegetables; (2) Eurodrip, a global manufacturer and supplier of drip irrigation solutions; (3) Icicle Seafoods, a producer, harvester and processer of salmon, pollock, halibut, cod, crab and other seafood products with operations in North and South America; (4) Scanbio Marine Group, a Norwegian producer of fish protein concentrate, fish meal, and fish oil; and (5) Sunrise Growers/Frozsun Foods, a value-added frozen fruit processor and marketer.

Paine & Partners has offices in San Mateo, CA; New York, NY and Chicago, IL (www.painepartners.com).

2014 PEPD • Private Equity’s Leading News Magazine • 10-1-14

Paine & Partners Invests in QC Corporation

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Paine & Partners has made an investment in QC Corporation, a producer and supplier of granular and dry micronutrients and ferrous sulfate products.

“Our investment in QC provides a platform for the company to enhance its already exceptional products and accelerate its growth trajectory.  We see tremendous potential in QC’s granular micronutrients business and believe QC can leverage cross-portfolio synergies from our agribusiness companies, specifically Verdesian Life Sciences, which focuses on plant health and specialty nutrition,” said Angelos Dassios, Partner of Paine & Partners.  “We look forward to working with QC to capitalize on new market opportunities and realize QC’s significant potential.”

QC is a producer and supplier of granular and dry micronutrients and ferrous sulfate products.  Ferrous sulfates have uses in fertilizers and animal feed, soil remediation and land reclamation, hazardous waste and water treatment, and chemical process industries.  QC currently has two independent ferrous sulfate operations, located in Cape Girardeau, MO and North Lima, OH.  The company was founded by Don Gordon in 1971 and is headquartered in Baltimore (www.qccorporation.com).

The Gordon family will continue to lead the day-to-day operations of the business.  Don Gordon has been appointed Chairman of the Company.  Jason Gordon, Don’s son, has been appointed Chief Executive Officer.  Jason has almost 20 years of experience working at QC and has served as the company’s President, Chief Operating Officer, Chief Financial Officer, and Vice President of Sales & Marketing, among other roles.

“Paine & Partners is committed to providing QC with the necessary capital, expertise and resources to accelerate the granular micronutrient expansion strategy that is already in progress,” said Don Gordon, Chairman.  “Over the past forty years, we have built QC into a leading supplier of ferrous sulfate and granulated fertilizer micronutrients.  We believe our partnership with Paine & Partners will enhance our industry leading products while maintaining our company’s strong core values.  I look forward to working with Paine & Partners and the entire QC team as we continue to build on our success.”

Paine & Partners provides equity capital for management buyouts, going private transactions, and company expansion and growth programs.  The firm currently makes investments through its $1.2 billion fund, Paine & Partners Capital Fund III, LP.  Paine & Partners has offices in San Mateo, CA; New York, NY and Chicago, IL (www.painepartners.com).

“The investment from Paine & Partners will facilitate our continued growth and help us reach our goals across the business, particularly in granular micronutrients.  Paine & Partners has a strong background in agribusiness and plant nutrition, and we look forward to taking the business to the next level with them,” said Jason Gordon, CEO.

Related to the transaction, QC and Paine & Partners worked with SDA Ventures (www.sdaventures.com), a consulting firm focused on corporate development, business acquisition, customer relations, growth strategies and corporate finance in the health and wellness and nutrition sectors.

“We have a long-term relationship with Steve Dubin and David Abramson, the principals at SDA and former CEO and President of Martek Biosciences,” said Kevin Schwartz, President of Paine & Partners.  “Through their relationship with Don Gordon, we were introduced to QC and became excited about its opportunities for growth.  SDA contributed strongly to our successful completion of this transaction.”

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© 2014 PEPD • Private Equity’s Leading News Magazine • 5-12-14

Central Valley Exits Ultra Gro Plant Foods

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The Central Valley Fund (CVF) has exited its investment in Ultra Gro Plant Food.  CVF supported a management led buy-out of Ultra Gro in 2008 by investing $3.35 million in mezzanine debt and equity to assist management in financing the purchase from the company founders.

Ultra Gro is a full-service provider of custom-blended fertilizers that can be tailored to a variety of crop, soil and microclimate conditions. The company is based in Madera, CA (www.ultragroplantfood.com).

“The 2008 management buy-out gave Ultra Gro the opportunity to take full advantage of the expanded demand for fertilizer products in a strong commodity market. Thanks to continued internal and external investment in the product range, Ultra Gro has captured new market share and continues to expand its customer base domestically, and in Mexico”,  according to President, Don Parreira.

The Central Valley Fund typically invests from $2 million to $10 million in subordinated debt and preferred stock instruments. Target companies will have revenues from $10 million to $100 million. The fund has offices in Davis and Fresno, CA (www.centralvalleyfund.com).

“Ultra Gro has become a market leader in specialty fertilizer in the Central Valley. The transformation of the business demonstrates our partnership with the management team and their hard work in creating a diversified business in a competitive market. We wish the business all the best in the future as it embarks on its next stage of growth,” said Ed McNulty, Partner at CVF.

© 2013 PEPD • Private Equity’s Leading News Magazine • 9-16-13