SK Capital backs chemical producers D.B. Western and Tri-Tex
Private investment firm SK Capital has acquired two chemical manufacturing companies, D.B. Western Inc. and Tri-Tex Co., for undisclosed amounts.
D.B. Western is a League City, Texas-based producer of formaldehyde and other chemical derivatives. The company’s products are used for a variety of applications involving oilfields, refineries and petrochemicals. D.B. Western operates from its La Porte, Texas manufacturing plant. The target is now doing business as Foremark Performance Chemicals.
Tri-Tex produces “high-performance” chemicals focused on the adhesive, sealants, surfactants, textiles, and paper chemical markets. Headquartered in St-Eustache, Quebec, the company’s portfolio of chemicals are used to develop everyday products in the consumer and industrial end markets, including: paints, printing, personal care, hygiene, construction, textile and marine.
New York-based SK Capital invests between $100 million and $200 million in businesses in the materials, chemicals and healthcare sectors. The firm manages approximately $1.9 billion in assets. In 2016, SK Capital bought a majority stake in ingredients producer Niacet Corp. The firm also backed wine ingredients supplier AEB Group and pharmaceutical chemicals provider Halo Pharmaceutical in 2015.
Recent deals for chemical companies include: KMG Chemicals Inc.’s (NYSE: KMG) acquisition of Flowchem; the Jordan Co. LP’s purchase of DuBois Chemicals Inc., a chemical producer for the manufacturing industry, from Aurora Capital Group; Maroon Group LLC’s acquisition of Lincoln Fine Ingredients; Platte River Equity’s purchase of Tiger-Sul Products LLC, a maker of crop performance products for the agricultural and industrial sector; and Hastings Equity Partners’ acquisition of Impact Chemical Technologies, a chemical maker to the oil and gas industries.
Morgan, Lewis & Bockius LLP served as legal counsel to SK Capital on both deals, while Lincoln International served as financial adviser to the PE firm on the transaction for D.B. Western. Tonkon Torp served as legal counsel to D.B. Western, while Capstone Partners acted as financial adviser. CIBC Mid-Market Investment Banking acted as financial adviser to Tri-Tex and also committed debt financing for the transaction.