Platte River Equity Leads Recapitalization of MFG Chemical
MILWAUKEE (June 27, 2017) – Grace Matthews, Inc. and MFG Chemical, Inc. (“MFG Chemical”) announced today that Platte River Equity III, L.P. (“Platte River Equity”) has completed a recapitalization of MFG Chemical. The company will continue to be led by the current President and COO, Keith Arnold. Grace Matthews, a Milwaukee-based investment bank, advised MFG Chemical on the recapitalization.
Based in Dalton, Georgia, MFG Chemical is a leading surfactants, polymers and specialty chemicals manufacturer. The company offers a diverse range of technical formulation capabilities on both a proprietary and contract manufacturing basis. Its strong formulation expertise has enabled the company to pursue a range of applications, notably in the oilfield and water treatment sectors. MFG Chemical is best known in the industry for the manufacture of sodium dioctyl sulfosuccinates (“DOSS”), a class of highly efficient and versatile surfactants.
The shareholders of MFG Chemical are members of the Gavin family, led by Charles Gavin, III, the founder and CEO of MFG Chemical. The Gavin family will maintain a significant ownership position in the company going forward. The shareholders elected to partner with Platte River Equity, a Denver-based private equity firm that has significant experience as an operator and investor in the specialty chemicals and oil & gas industries. The recapitalization will provide an opportunity for several family shareholders to retire from the company to focus on charitable activities and other interests.
Charles Gavin III, CEO of MFG Chemical, commented: “I founded MFG Chemical nearly 40 years ago as a family-first company focused on providing superior service and formulation expertise to our customers, as well as maintaining strong ties to the local community. The MFG family is excited to partner with Platte River based on their demonstrated experience in specialty chemicals and their commitment to preserve the company’s culture. They have an excellent reputation for operating and advising chemical businesses, and I am excited about their plans to foster growth at MFG Chemical.”
About MFG Chemical, Inc.
MFG has an established record in developing and manufacturing a range of chemicals that include polymers, surfactants, esters, and other specialty chemicals. With a full staff of chemists, engineers, and customer service representatives, MFG Chemical provides customers with reliable high-quality products and services, and has the capability to offer turn-key approaches for custom chemical manufacturing. For more information, visit www.mfgchemical.com.
About Grace Matthews, Inc.
Grace Matthews, Inc., a Milwaukee-based investment bank, provides merger, acquisition and corporate finance advisory services to private and public companies across the chemical and materials value chain. Grace Matthews is known globally for completing successful chemical industry transactions dating back to the early 1990s. Grace Matthews' principals have completed over 100 transactions involving global corporations such as AkzoNobel, 3M, DuPont, Sherwin-Williams, PPG Industries, Ashland, ICI, Air Products, Landec Corporation, The Home Depot, Hexion Specialty Chemicals, Becker Industrial Coatings, RPM International, Weatherford, BASF, Lubrizol, WR Grace, Axalta, Eastman, and Hempel. For more detailed information on Grace Matthews, Inc., visit www.gracematthews.com.
About Platte River Equity
Based in Denver, Colorado, Platte River Equity is a private equity firm focused on investing in middle market operating companies. Platte River invests in leading niche businesses where its principals can partner with management teams to develop growth strategies, launch new products, enter new markets, and offer additional services for and increasing sales and improving operations. The firm targets companies with revenues generally ranging between $20 million and $250 million. For additional information, please visit www.platteriverequity.com.
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