Private equity firm HIG Capital LLC is buying specialty chemicals manufacturer American Pacific Corp. (Nasdaq: APFC) for $392 million.
Las Vegas-based American Pacific is known for making pharmaceutical ingredients, as well as chemicals used for water treatment and fire protection. The target also manufactures chemicals for rocket motors used in space launches.
Under the terms of the deal, HIG affiliates, no later than Jan. 24, will commence a tender offer to acquire American Pacific’s common stock for $46.50 per share. American Pacific’s stock closed at $39.12 on Jan. 9, before the deal was announced.
HIG, headquartered in Miami, has more than $13 billion in equity capital under management. In May, the firm closed a deal for Caraustar Industries Inc., which provides recycled paperboard and other products. Before that, in April, HIG bought Pegasus Financial Services, a company that processes commissions paid by hotels to travel agencies.
KeyBanc Capital Markets Inc. is acting as financial adviser, while Morrison & Foerster LLP is providing legal advice to American Pacific. Morgan Stanley & Co LLC provided a fairness opinion to American Pacific’s board of directors, and Munger Tolles & Olson LLP is providing legal advice. Ropes & Gray LLP is acting as HIG’s legal adviser.