Littlejohn acquires Cornerstone, as chemical deals flow
Littlejohn & Co. has agreed to buy chemicals producer Cornerstone Chemical Co. from HIG Capital. The deal comes as the middle-market is seeing robust M&A in the chemicals sector.
Headquartered in Waggaman, Louisiana, Cornerstone manufactures melamine and sulfuric acids for the fracking, construction and transportation sectors. Financial terms of the deal were not disclosed. HIG purchased the target in 2011.
Littlejohn is a Greenwich, Connecticut-based investment advisory firm that backs middle-market companies seeking a change in capital structure, strategy, operations or growth. The firm is currently investing from Littlejohn Fund V, the firm's fifth fund with nearly $2 billion in capital commitments. The firm recently purchased money vault maker Tidel and acquired patio furniture manufacturer Brown Jordan International in January 2017. Littlejohn raised a $406 million collateralized loan obligation fund (CLO), called Wellfleet CLO 2016-2 in November 2016.
The middlle-market has been seeing its fair share of chemical deals including: KMG Chemicals Inc.’s (NYSE: KMG) acquisition of Flowchem; the Jordan Co. LP’s purchase of DuBois Chemicals Inc.,; Maroon Group LLC’s acquisition of Lincoln Fine Ingredients; and Platte River's investment in MFG Chemical.
KeyBanc Capital Markets Inc. (NYSE: KEY) is advising Cornerstone. Goldman Sachs Group Inc. (NYSE: GS) is providing financing to Littlejohn.