Daily News: November 30, 2012

Resilience Capital Completes Sale of ChemDesign to Lubar

Resilience Capital Partners announced that ChemDesign Products, Inc., a portfolio company of The Resilience Fund II, has been acquired by Lubar & Co., a Milwaukee-based private investment firm. ChemDesign is a provider of custom toll manufacturing services to the global chemical industry. The company has developed a strong reputation for partnering with its blue-chip customers, utilizing its technical personnel, flexible manufacturing facilities and process optimization capabilities to produce highly complex chemicals.

Dresner Partners, a middle-market investment bank, advised ChemDesign Products, in its sale.

The sale of ChemDesign generated a great result for Resilience, its investors, and the management team of the company with a 3.8x net return on invested capital and a 25.9% net internal rate of return. “Our investment in ChemDesign is a great case study in corporate renewal. Through hard work, vision, and an operations oriented approach real value was created for the benefit of all the Company’s various stakeholders,” said Bassem Mansour, Co-CEO of Resilience. Resilience acquired ChemDesign in October 2006 in a chapter 11 363 Sale. The original investment thesis was focused on the Company’s unique and flexible processing capabilities selling into attractive end markets.

“The Dresner team did a great job in orchestrating the entire sale process. Their attention to detail and understanding of the salient business issues enabled us to maximize value for our shareholders,” said Ki Mixon, partner of Resilience Capital Partners.

“It was our privilege to work with Bassem Mansour and Ki Mixon of Resilience Capital and Dave Mielke and the rest of the outstanding management team at ChemDesign,” said Omar Diaz, managing director at Dresner Partners. “ChemDesign’s revitalized business model, position in the global chemical supply chain and strong relationships with many of the leading players in the chemical industry made it an attractive, highly sought after target. We leveraged our extensive chemical industry experience and relationships with both strategic and private equity buyers to help generate this outstanding outcome for Resilience and ChemDesign.”

Jones Day served as legal counsel to ChemDesign, Resilience and its affiliates.

Headquartered in Cleveland, Resilience Capital Partners is a private equity firm with a team of in-house operating experts that bring large company resources to the lower middle-market.