Capstone Partners LLC, announced that it has successfully advised D.B. Western, Inc. - Texas (DBWT) on its acquisition by SK Capital Partners (SK Capital). Terms of the deal were not disclosed.
DBWT is a leading producer of formaldehyde, urea-formaldehyde concentrates and MEA Triazines. The Company utilizes the most advanced technology in the industry and its LaPorte, Texas facility is the largest merchant market plant in North America. DBWT will be renamed Foremark Performance Chemicals and will be led by Randy Owens, former CEO of one of SK Capital’s portfolio companies.
SK Capital is a New York-based private equity firm that invests in the specialty materials, chemicals and pharmaceutical sectors. By focusing on niche markets SK Capital leverages its industry expertise to become a value-added partner. The firm currently has more than $1.9 billion under asset management and its portfolio companies generate an estimated $5.0 billion in revenue each year.
Steve Beetham, representing the selling shareholders, commented,
“SK Capital is the perfect partner to advance DBWT’s leadership among merchant market producers of formaldehyde and its derivative products. We were extremely pleased with Capstone Partners who represented us in this complex sale process and optimized all aspects of the transaction for our family.”
Jack Norris, Managing Director at SK Capital commented in a press release
“Foremark represents a compelling opportunity to own an industry leader with proprietary, best-in-class production capabilities that provides critical building block chemicals to a growing blue-chip customer base with diversified end market exposure. The investment is consistent with SK Capital’s strategy of investing in niche market leaders in segments where the firm has significant industry, operating and ownership experience.” According to Norris, Foremark will be transitioned from a product-oriented company to a leader of intermediates and derivatives for oilfield refineries and petrochemical customers.
David Bench, Managing Director of Capstone Partners added, “Interest among buyers in the acquisition of DBWT was very robust. The strategic and cultural fit with SK Capital is very compelling and we are delighted to have played a role in helping DBWT and its shareholders partner with a firm that will lead the company in its next chapter of success.”
The former shareholders will continue to be closely associated with the group and remain minority shareholders and support the management team in the role of an advisory board as well as consultants.
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