Edgewater Capital Partners Completes Sale of Operating Subsidiaries of Syrgis Performance Products
MILWAUKEE (September 12, 2012) – Grace Matthews, Inc. (“Grace Matthews”), Edgewater Capital Partners (“Edgewater”), and Syrgis Performance Products, LLC (“Syrgis”) announced today the sale of Syrgis Performance Specialties (“Syrgis Specialties”) to management. Syrgis Specialties is a manufacturer of ultraviolet (“UV”) light inhibitors used as intermediates by other chemical formulators to prevent degradation of their products by UV radiation.
The sale completes the divestiture of the three operating subsidiaries of Syrgis, which included, in addition to Syrgis Specialties, Syrgis Performance Chemicals (“P Chem”), a manufacturer of high-performance chemicals for the oil and gas industry, and Syrgis Performance Initiators (“SPI”), a manufacturer of organic peroxide initiators used to polymerize resins in the making of fiber-reinforced and unreinforced composite products. P Chem was acquired by Weatherford International in June 2012, and SPI was purchased by United Initiators in July 2012. Collectively, the Syrgis businesses generated over $100 million in annual revenues. Grace Matthews advised Edgewater and Syrgis on all three transactions.
Chris Childres, a Managing Partner at Edgewater commented: “The sale of the Syrgis businesses completes the successful execution of a specialty chemical consolidation we began more than ten years ago. Through the efforts of Edgewater and the Syrgis management team, each of the Syrgis businesses developed into a leader in its respective markets, with excellent sales growth, strong profits, and world-class operations. We are especially thankful to Grace Matthews, our investment bankers, and Jones Day, our attorneys, for their expert guidance during a lengthy transaction process. With their help, we were able to realize attractive valuations for our businesses and generate excellent returns for our investors.”
“Each of the Syrgis operating companies was a leader in a defensible niche market,” said John Beagle, a Managing Director of Grace Matthews. “If you take the time and effort to really think about strategic fit in a deal, you can deliver a great outcome. Both P Chem and SPI were acquired by strong strategic buyers that can expand their geographic reach into new markets. Syrgis Specialties was a unique case. As the only U.S., and of the few global, manufacturers of a unique type of UV light inhibitor, it became clear that the existing management team was the best potential buyer, and we’re pleased that the business will continue to benefit from the excellent management that has been responsible for its market leadership.”
ABOUT EDGEWATER CAPITAL PARTNERS
Edgewater Capital Partners, based in Cleveland, Ohio, is a private equity firm focused on the acquisition of lower middle market, specialty materials companies, defined as specialty chemicals, pharmaceuticals, and specialty substrates. Edgewater acquires companies with strong financial performance, tangible competitive advantages, and intriguing growth prospects. As value-added investors, Edgewater provides more to its portfolio companies than just capital. Through deep partnerships with management teams and knowledge developed through years of successful principal investing, Edgewater has the ability and know-how to cultivate, support and grow companies into market leaders.
ABOUT GRACE MATTHEWS
Grace Matthews, Inc., a Milwaukee, Wisconsin-based investment bank, provides merger, acquisition and corporate finance advisory services to private and public companies. Grace Matthews’ chemical practice is known globally for its expertise in completing successful chemical industry transactions dating back to the early 1990s. Grace Matthews’ principals have completed over 60 transactions involving global corporations such as Akzo Nobel, 3M, DuPont, Sherwin-Williams, PPG Industries, Ashland, Ceradyne, DSM, ICI, Borregaard, Air Products, Landec Corporation, The Home Depot, Hexion Specialty Chemicals, Atofina Chemicals, Brush Engineered Materials, Becker Industrial Coatings, RPM International, Courtaulds, Domino Sugar, and Chr. Hansen Laboratories. For more detailed information on Grace Matthews, Inc., visit www.gracematthews.com.
Grace Matthews’ goal is to help business owners, corporate managers, and other stakeholders unlock the value of their businesses by employing strategies that maximize value and achieve other business objectives.