HIG buys back stake in Vantage Specialty Chemicals

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HIG Capital is acquiring a majority stake in chemicals producer Vantage Specialty Chemicals Holdings Inc. from the Jordan Co. HIG formed the target in 2008 through the acquisition of Croda International's U.S. olechemcials business. The private equity firm then sold the company to Jordan Co. in 2012.

Chicago-based Vantage makes chemicals and ingredients for the personal care, food and beverage, consumer and industrials sectors. Jordan Co. is going to keep a minority stake in the target. In 2016, Vantage acquired Mallet and Co. Inc.

"The Company’s diverse product portfolio, customer base, and geographic presence uniquely position it to capitalize on growth opportunities within the global specialty ingredients market," says HIG managing director Keval Patel. HIG is a Miami-based middle-market private equity firm with more than $20 billion under management. The firm recently reached a deal to acquire government data analytics provider NCI.

Deutsche Bank, Houlihan Lokey Inc. (NYSE: HLI) and Mayer Brown LLP are advising Vantage. Ropes & Gray LLP is representing HIG. Morgan Stanley, RBC Capital Markets and Jefferies are providing financing.

The middle-market continues to see robust activity in the chemicals sector. Huron Capital formed Brudner Polyme to pursue investments in the space; Other deals include: Ingevity Corp.’s (NYSE: NGVT) acquisition of Georgia-Pacific’s pine chemicals business for $315 million andLittlejohn’s purchase of Cornerstone Chemical Co.

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