Edgewater Divests Syrgis Performance Products
Edgewater Capital Partners (“Edgewater”) is pleased to announce today that it has completed its divestiture of the operating assets of Syrgis Performance Products (“Syrgis”) with the sale of Syrgis Specialties (“Specialties”), the company’s ultraviolet (“UV”) light Inhibitor business located in El Dorado, Arkansas, to members of its management team.
The sale of Specialties completes Edgewater’s divestiture of the Syrgis operating companies, which began with the sale of Syrgis P Chem (“P Chem”), the company’s oilfield chemicals business, to Weatherford International in June, and continued with the sale of Syrgis Performance Initiators, the company’s ketone peroxide business, to United Initiators in July. Syrgis had in excess of $100 million in sales in 2011.
COMMENTING ON THE ACQUISITION, CHRIS CHILDRES, MANAGING PARTNER AT EDGEWATER CAPITAL PARTNERS SAID:
“The sale of the Syrgis businesses this summer completes the successful execution of this particular specialty chemical consolidation program we began more than ten years ago. Through the efforts of Edgewater and the management team, Syrgis developed into a leader in its respective markets, with excellent sales growth, strong profits and world class operations. Each underlying operating subsidiary was exceptionally attractive to both strategic and financial buyers. In the end, with outstanding M&A advice from Grace Matthews, our investment bank, and exceptional legal guidance from Jones Day, our attorneys, we were able to realize an attractive valuation for the business and deliver a superb return to our investors.”
ABOUT SYRGIS P CHEM:
P Chem manufactures high-performance chemical additives for every step of the petroleum and natural gas production process, from the wellhead to the refinery. P Chem’s chemical formulations include corrosion inhibitors, scale inhibitors, scavengers, demulsifiers, defoamers, and other products that are used to protect and preserve capital equipment in the field and to improve production efficiency and capacity.
ABOUT SYRGIS PERFORMANCE INITIATORS:
Syrgis Performance Initiators manufactures organic peroxides that, when used in the production of reinforced and cast polymer composite products, initiate the gel and cure of a resin at room and elevated temperatures while increasing its durability. Syrgis Performance Initiators is the leading producer of organic peroxide initiators used in the polymerization of unsaturated polyester, vinyl ester, styrenic and other resins.
ABOUT SYRGIS SPECIALTIES:
Specialties, headquartered in El Dorado, AR, manufactures UV light stabilizers and inhibitors for use in plastics, coatings, adhesives, cosmetics, and personal care applications. Added to a customer’s chemical formulation, the company’s products preserve and enhance the color or fragrance of the final product that can degrade with continued exposure to UV radiation. The company’s key products include the MAXGARD line of inhibitors.
ABOUT EDGEWATER CAPITAL:
Edgewater Capital Partners, based in Cleveland, Ohio, is a private equity firm focused on the acquisition of lower middle market, specialty materials companies, defined as specialty chemicals, pharmaceuticals, and specialty substrates. Edgewater acquires companies with strong financial performance, tangible competitive advantages, and intriguing growth prospects. As value-added investors, Edgewater provides more to its portfolio companies than just capital. Through deep partnerships with management teams and knowledge developed through years of successful principal investing, Edgewater has the ability and know-how to cultivate, support and grow companies into market leaders.
Edgewater Capital Partners Divests Syrgis Performance Products