Unifrax, a portfolio company of Clearlake Capital Group, has acquired Stellar Materials, a manufacturer of specialty chemistries and materials. Clearlake acquired Unifrax from American Securities in October 2018.
Stellar Materials is a manufacturer of patented specialty chemicals and materials sold worldwide under the Thermbond brand. The company’s products are used as linings in furnaces in the metals, minerals and hydrocarbon processing industries.
Stellar Materials, led by President David Mintz, is headquartered in Boca Raton, FL with an 80,000 sq. ft manufacturing facility near Detroit in Whitmore Lake, MI (www.thermbond.com).
Unifrax is a supplier of specialty fibers and inorganic materials that are used in emission control, thermal management, filtration, battery and fire protection applications. The company’s ceramic and microfine glass fiber products are sold worldwide, primarily to more than 4,000 industrial, commercial and automotive customers.
Unifrax operates 31 manufacturing facilities in the United States, Europe, the Middle East, Russia, Asia, South Africa and Latin America. The company has 2,300 employees and is headquartered near Buffalo in Tonawanda, NY (www.unifrax.com).
“This acquisition represents another positive step in the continued implementation of our long-term growth strategy and our focus on delivering energy efficient, environmentally friendly solutions that protect people and products around the globe,” said CEO John Dandolph. “The addition of Stellar and the Thermbond brand expands our portfolio of solutions in high-temperature applications, enhances our overall manufacturing capabilities and supports our mission for a ‘Greener, Cleaner and Safer’ world.
“John Dandolph and his team have consistently demonstrated an ability to grow Unifrax by delivering innovative new products and technologies to its customers,” said José Feliciano, co-founder and managing partner at Clearlake. “The addition of Stellar’s capabilities enhances Unifrax’s specialty materials market leadership and delivers even greater value to customers. The company’s vision of growth both organically and through its strategic M&A program is consistent with our philosophy of entrepreneurial ownership, and we are delighted to be Unifrax’s long-term partner.”
Clearlake has over $9 billion of assets under management and invests in the following sectors: industrials and energy; software and technology-enabled services; and consumer. In March 2018, Clearlake closed Clearlake Capital Partners V LP with over $3.6 billion in commitments. Fund V exceeded its target and was substantially oversubscribed, reaching its hard cap. At over $3.6 billion, Fund V is the largest fund that Clearlake has ever raised. The firm was co-founded by Mr. Feliciano and Behdad Eghbali in 2006 and is headquartered in Santa Monica, CA (www.clearlake.com).
Morgan Stanley and Stifel provided financing to support this acquisition.
BMO Capital Markets was the financial advisor to Stellar on the transaction.
© 2019 Private Equity Professional | June 17, 2019