CHS Capital has reached an agreement to sell Dura-Line, a manufacturer of protective conduits, to Mexichem, S.A.B. de C.V., for a total of $630 million in cash and assumed liabilities. The transaction is expected to close in the fourth quarter of 2014.
Dura-Line is a manufacturer and distributor of communication and energy infrastructure products and systems including conduit, cable-in-conduit, pipe, and accessories. Dura-Line’s products are used in a variety of markets including telecommunications, enterprise networking, energy, transportation, wastewater and aquaculture. The company has manufacturing facilities in the US, Mexico, India, Oman, Europe, and South Africa. Dura-Line is headquartered in Knoxville, TN (www.duraline.com).
Mexichem produces and sells chemicals products that are used in the construction and civil infrastructure, water supply and basic sanitation, power generation, transportation, communication, and health care sectors. The company has approximately 17,300 employees worldwide and has 102 production plants, 2 fluorspar mines and 8 research & development laboratories. Mexichem was founded in 1998 and is located northwest of Mexico City in Tlalnepantla, Mexico (www.mexichem.com).
Once the transaction has closed, Mexichem will consolidate Dura-Line under the company’s Integral Solutions division for accounting purposes. Dura-Line will continue to operate under its current management and with its existing brand portfolio.
“The acquisition of Dura-Line is a further step in our strategy of becoming a global, vertically integrated chemical company with a focus on high-end specialized products and solutions,” said Antonio Carrillo, CEO of Mexichem. “Dura-Line’s technological expertise and leading market position in telecom, data communications and energy piping, including its portfolio of blue-chip customers, will allow us to expand in these fast-growing segments across our global operations. Dura-Line’s international footprint will allow our Integral Solutions business to increase penetration in key markets, and will also provide a platform for growth in new geographies for all of Mexichem’s products.”
CHS Capital (formerly Code Hennessy & Simmons) specializes in private equity investments and recapitalizations of middle market companies in partnership with management. CHS targets companies with enterprise values between $75 million and $500 million. Industries of interest include business & consumer services; distribution; industrial products; infrastructure; and energy. The firm is headquartered in Chicago (www.chsonline.com).
2014 PEPD • Private Equity’s Leading News Magazine • 8-19-14