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SK Capital Acquires Valtris Specialty Chemicals

August 5, 2022
August 5, 2022
Louis Reed via Unsplash

SK Capital Partners has acquired Valtris Specialty Chemicals from H.I.G. Capital.

WHO: Valtris, headquartered in Independence, Ohio, is a leading global manufacturer of a comprehensive portfolio of specialty additives and precursors, offering solutions and innovative products to customers worldwide. Valtris develops products that provide essential performance properties across a variety of applications including plastics, coatings, adhesives and sealants, pharmaceuticals, flavors and fragrances, and personal care products. The company operates nine manufacturing locations and employs approximately 700 people across North America, Europe, and Asia.

Miami-based H.I.G. is a leading global alternative assets investment firm with over $49 billion of equity capital under management. H.I.G. specializes in providing both debt and equity capital to small and mid-sized companies, utilizing a flexible and operationally focused / value-added approach.

SK Capital Partners is a New York-based private investment firm focused exclusively on the specialty chemicals, materials, and pharmaceuticals sectors.

IN THEIR OWN WORDS: Jack Norris, a Managing Director of SK Capital, stated, "Valtris is a well-regarded producer of specialty additives that improve performance and deliver critical attributes for its customers. Over its 75-year history, the Company has developed a strong reputation as a premium solutions provider to its diverse customer base. We are excited that Valtris will be joining the portfolio of SK Capital, where we have significant experience in the additives markets through multiple prior investments."

Paul Angus, Valtris' CEO, said, "It has been a pleasure to work with H.I.G. since carving out the business from Ferro. Together, we have built a strong global leader in polymer additives that is well-positioned for robust future growth. SK's investment is a strong validation of our Company and talented team and launches an exciting new chapter for Valtris."

Keval Patel, Head of U.S. Middle Market Private Equity and Head of North American Chemicals at H.I.G., commented, "We have enjoyed working with Paul and the entire Valtris team. The successful outcome here is a direct result of execution of the plan that we set out to accomplish. We are proud of these achievements, which position the Company well for continued success under SK Capital."

Matt Gullen, Managing Director at H.I.G., added, "We have been thrilled with the partnership with Valtris' management and the successful transformation from a North American focused business to a global market player. We see tremendous potential ahead for the Company."

DETAILS:

  • SK Capital Partners acquired Valtris Specialty Chemicals from H.I.G. Capital. 
  • After a successful carve-out transaction from Ferro Corporation in late 2014, H.I.G. collaborated with management to expand the company's geographic reach, customer breadth, and product portfolio through the acquisition of Akcros Chemicals in the US and UK in 2016 and multiple INEOS Enterprises business units in France, Belgium, and the Netherlands in 2018. Additionally, the company made significant investments in management, sales and marketing, and new product development, which resulted in EBITDA tripling during H.I.G.'s ownership.
  • Latham & Watkins LLP acted as legal counsel and TM Capital served as financial advisor to SK Capital. Committed debt financing was provided by Cerberus Business Finance, LLC. 
  • Lazard Middle Market was lead financial advisor to H.I.G., and McDermott Will & Emery LLP served as legal advisor to H.I.G. and Valtris Specialty Chemicals in connection with the transaction. Piper Sandler also served as a financial advisor.
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