Grace Matthews advised the owners of Rheogistics LLC (“Rheogistics”) on its sale to The International Group, Inc. (“IGI”).
Founded in 2000 and headquartered in Picayune, Mississippi, Rheogistics focuses exclusively on the science of rigid PVC processing. Rheogistics’ leading portfolio of proprietary, hydrocarbon wax-based additives and lubricant systems for rigid PVC offers superior performance and consistency for PVC applications including siding, windows, pipe & fittings, conduit and other building products.
Grace Matthews was engaged by Rheogistics to explore a sale process that would help them identify a partner capable of supporting Rheogistics’ next phase of growth while also allowing Tom Pedersen, majority owner, CEO and Technical Director, to gradually transition into retirement. Grace Matthews conducted a broad auction process for Rheogistics that included outreach to a variety of potential strategic and private equity buyers. The process generated a significant amount of interest, and multiple groups were invited to participate in management meetings and perform due diligence. Supported by a tightly-managed process timeline, Grace Matthews helped navigate significant market uncertainty due to the COVID-19 pandemic, which began during the active marketing phase of the process. Rheogistics received multiple compelling final offers from high-quality potential partners.
Ultimately, the owners chose to partner with IGI, a vertically-integrated manufacturer of custom and performance waxes based in Toronto, Ontario. The transaction provided full liquidity to Rheogistics’ owners and a path for Mr. Pedersen to transition away from day-to-day management responsibilities and into a technology-focused role, with a plan in place for his eventual retirement. IGI also provided Rheogistics with a broader geographic manufacturing footprint that will enable it to better serve its customer base in the rigid PVC lubricants market.