Jan 18, 2024   SOURCE: BusinessWire

USALCO, an H.I.G. Portfolio Company, Completes Acquisition of Brenntag Southwest’s Coagulant Manufacturing Business

H.I.G. Capital ("H.I.G."), a leading global alternative investment firm with $60 billion of capital under management, is pleased to announce that its portfolio company, USALCO, LLC (“USALCO” or the “Company”), has acquired the coagulant manufacturing business of Brenntag Southwest, Inc. (“Brenntag”). USALCO is a leading provider of water treatment solutions for municipal and commercial customers in the United States.

Brenntag’s coagulants business is based in Houston, TX, and serves a diverse group of municipal and commercial water treatment customers in Texas, a key growth region for USALCO. Post-close, USALCO will relocate production to its existing manufacturing sites in the area and is committed to providing outstanding customer service, delivery, and quality to Brenntag’s customer base.

“Brenntag’s coagulant business is a great addition to USALCO,” said Ken Gayer, CEO of USALCO. “This acquisition broadens our customer base in the Texas region, which is a major area of growth for us."

Tom Crain, President of Brenntag Southwest, Inc. noted, “This is a win-win transaction. Brenntag is a premier distributor of water treatment chemicals, while manufacturing is not a core part of our strategy. USALCO is an important manufacturing partner for Brenntag across the U.S., and we can count on them to continue delivering quality products to us and our customers.”

“We are excited to continue USALCO’s strategic geographic expansion by adding Brenntag Southwest’s coagulant manufacturing business,” said Keval Patel, Managing Director at H.I.G. “Ken and the USALCO leadership team have built an exceptional specialty water treatment solutions provider with significant runway for continued growth.”

About USALCO

USALCO is a leading provider of water treatment solutions for municipal and commercial customers in the United States, offering bespoke formulated chemistries and leading product efficacy to address a diverse range of water treatment requirements. Headquartered in Baltimore, MD, USALCO operates 32 manufacturing and distribution facilities throughout the United States. For more information, visit https://www.usalco.com/.

About Brenntag

Brenntag is the global market leader in chemicals and ingredients distribution. The company holds a central role in connecting customers and suppliers of the chemical industry. Headquartered in Essen, Germany, Brenntag has more than 17,500 employees worldwide and operates a network of about 600 sites in 72 countries. In 2022, Brenntag generated sales of around 19.4 billion EUR. The two global divisions, Brenntag Essentials and Brenntag Specialties, provide a full-line portfolio of industrial and specialty chemicals and ingredients as well as tailor-made application, marketing and supply chain solutions, technical and formulation support, comprehensive regulatory know-how, and digital solutions for a wide range of industries.

About H.I.G. Capital

H.I.G. Capital is a leading global alternative investment firm with $60 billion of capital under management.* Based in Miami, and with offices in New York, Boston, Chicago, Dallas, Los Angeles, San Francisco, Atlanta, and Stamford in the U.S., as well as international affiliate offices in London, Hamburg, Madrid, Milan, Paris, Luxembourg, Bogotá, Rio de Janeiro, São Paulo, and Dubai, H.I.G. specializes in providing both debt and equity capital to mid-sized companies, utilizing a flexible and operationally focused/ value-added approach:

  1. H.I.G.’s equity funds invest in management buyouts, recapitalizations, and corporate carve-outs of both profitable as well as underperforming manufacturing and service businesses.
  2. H.I.G.’s debt funds invest in senior, unitranche, and junior debt financing to companies across the size spectrum, both on a primary (direct origination) basis, as well as in the secondary markets. H.I.G. also manages a publicly traded BDC, WhiteHorse Finance.
  3. H.I.G.’s real estate funds invest in value-added properties, which can benefit from improved asset management practices.
  4. H.I.G. Infrastructure focuses on making value-add and core plus investments in the infrastructure sector.

Since its founding in 1993, H.I.G. has invested in and managed more than 400 companies worldwide. The firm's current portfolio includes more than 100 companies with combined sales in excess of $53 billion. For more information, please refer to the H.I.G. website at www.hig.com.

* Based on total capital raised by H.I.G. Capital and affiliates