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Sun Capital's Associate Completes Sale of Emerald to Achieve Dramatic Growth

Published on 2014-08-05. Author : SpecialChem

Sun Capital Partners, Inc. one of the leading private investment firms specializing in leveraged buyouts and investments in market-leading companies, has announced that an affiliate has completed the sale of its investment in Emerald Performance Materials ("Emerald" or the "Company"), a leading global producer and marketer of specialty chemicals for niche consumer and industrial end-markets, to American Securities LLC. Terms of the private transaction were not disclosed.

Headquartered in Cuyahoga Falls, Ohio, Emerald serves a wide range of attractive, multi-billion dollar endmarkets, many of which are recession-resistant or on strong growth trajectories, such as flavors & fragrances, food & beverage, personal and household care, composites, structural adhesives, coatings, and flooring, among others. The Company's products enable end users to make goods that perform better through a variety of applications, such as adding color to paint and cosmetics, adding longevity to tires, imparting strength to adhesives and composites, providing scents to perfumes and soaps, and preserving soft drinks.

"We're extremely proud that by applying our deep experience in building corporate carve-outs into market leaders, Emerald has transformed into one of the top performers in the industry, achieving more than a three-fold increase in EBITDA while owned by a Sun Capital affiliate," said Marc Leder, Co-CEO at Sun Capital. "We're confident Emerald is poised for continued success under its new owner."

Emerald was created from the divestiture of six separate chemicals businesses by a corporate parent. Since the acquisition by a Sun Capital affiliate, a standalone infrastructure was put in place and manufacturing assets were reconfigured to optimize production capacity and focus on higher margin products. These efforts enabled Emerald to extend its product breadth and geographic reach through both organic growth and a series of strategic add-on acquisitions including CVC Specialty Chemicals and DSM Special Products.

"Significant investments in new plant equipment enabled the Company to expand capacity at its Rotterdam, Netherlands and Kalama, Washington sites in order to meet increased customer demand," said Jonathan Borell, Principal at Sun Capital. "Refocusing on higher margin specialty products and a commitment to investment in research and development has added more than 50 new products to Emerald's portfolio in recent years. These initiatives have helped make Emerald a leading specialized chemical producer."

About Sun Capital Partners, Inc.

Sun Capital Partners, Inc. is a pioneer in private equity investing, uniquely combining the financial skills and resources of a traditional private equity firm with the insight and expertise of a world class operating team. The firm focuses on market-leading companies that can benefit from our in-house professionals, resources, and expertise in their efforts to materially improve operating performance. Sun Capital affiliates have invested in more than 340 companies worldwide with combined sales in excess of $45 billion since our inception in 1995. Sun Capital has offices in Boca Raton, Los Angeles and New York, and affiliates in London, Frankfurt, Paris, Luxembourg, Shanghai and Shenzhen.

About Emerald Performance Materials

Emerald Performance Materials, LLC produces and markets technologically advanced specialty chemicals for a broad range of food and industrial applications. Its products play a variety of roles in the products that are consumed and used every day, enabling them to last longer, look, smell, taste or perform better. Emerald products are used in aerospace, food, beverages, cosmetics, toothpaste, household products, paint, tires, automobiles, sports gear and many other applications.

Source: Sun Capital Partners, Inc.


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