H.I.G. Capital, a global alternative investment firm with more than $49 billion of equity capital under management, signed an agreement to sell its portfolio company, Valtris Specialty Chemicals, to an affiliate of funds managed by SK Capital Partners.
Valtris is a manufacturer of specialty polymer additives and specialty chemicals for a diverse set of end markets. The company’s products impart critical performance characteristics, including flexibility, stability processability and flame retardance, to plastics and other materials. Valtris is recognized worldwide for its reliability as a critical global supplier to a diverse customer base with longstanding relationships based on its reliability, quality and product innovation over its more than 80 year history. Headquartered in Independence, OH, the company operates nine manufacturing facilities globally.
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 U.S. 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.
“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,” Paul Angus, CEO of Valtris, said. “SK’s investment is a strong validation of our company and talented team and launches an exciting new chapter for Valtris.”
“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,” Keval Patel, head of U.S. middle-market private equity and head of North American chemicals at H.I.G., said. “We are proud of these achievements, which position the company well for continued success under SK Capital.”
“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,” Matt Gullen, managing director at H.I.G., said. “We see tremendous potential ahead for the company.”
Lazard Middle Market was lead financial advisor to H.I.G., and McDermott Will & Emery served as legal advisor to H.I.G. and Valtris Specialty Chemicals in connection with the transaction. Piper Sandler also served as a financial adviser. The transaction is expected to close in Q3 2022 and is subject to customary closing conditions.
