American Securities LLC, a leading U.S. private equity firm, announced that it has partnered with management and signed a definitive agreement to acquire Emerald Performance Materials, LLC from an affiliate of Sun Capital Partners, Inc. The transaction is expected to close in the third quarter of 2014 and is subject to customary closing conditions and regulatory approvals. Financial terms of the transaction were not disclosed.
Based in Cuyahoga Falls, Ohio, Emerald is a leading producer and marketer of specialty chemicals for niche consumer and industrial end-markets, which include flavors & fragrances, food & beverage, personal and household care, composites, structural adhesives, coatings, and flooring. 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. Emerald has eight operations and approximately 750 employees.
Candace M. Wagner, President and Chief Financial Officer of Emerald, said, “Over the past several years, we have continued to build a diverse family of market-leading brands, a blue chip customer base and a consistent record of annual revenue growth. We are excited to partner with American Securities as we look to innovate and produce the highest quality products available in the markets we serve, strengthen our operating focus and explore other initiatives to further expand our businesses.”
Scott M. Wolff, Managing Director at American Securities, commented, “Emerald represents a compelling investment opportunity and leverages our industry knowledge and track record in the specialty chemicals sector. We believe Emerald offers attractive growth opportunities, defensible market positions and a diverse portfolio of high quality businesses. We look forward to partnering with the seasoned management team to drive business performance.”
Weil, Gotshal & Manges LLP served as legal counsel to American Securities, and Kirkland & Ellis LLP served as legal counsel to Emerald with respect to the transaction. Lazard and KeyBanc Capital Markets acted as financial advisors to Emerald with respect to the transaction.
About Emerald Performance Materials
Emerald Performance Materials produces and markets technologically advanced specialty chemicals for a broad range of food and industrial applications. Emerald® 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. Headquartered in Cuyahoga Falls, Ohio, Emerald has four business groups, eight operations and approximately 750 employees. For more information, the company’s website is www.emeraldmaterials.com.
About American Securities LLC
Based in New York with an office in Shanghai, American Securities is a leading U.S. private equity firm that invests in market-leading North American companies with annual revenues generally ranging from $500 million to $2 billion. American Securities and its affiliates have approximately $10 billion under management. American Securities is currently investing from its sixth fund. The firm traces its roots to a family office founded in 1947 to invest and manage a share of the fortune created from the growth of Sears, Roebuck & Co in the early 1900s. More information about American Securities can be found at www.american-securities.com.
The Weil team includes:
Corporate:
Partner Michael Lubowitz (New York)
Associate Ryan Taylor (New York)
Associate Christina DeVuono (New York)
Adam Dilluvio (New York) (not yet admitted to practice)
Adam Templeton (New York) (not yet admitted to practice)
Tax:
Partner Mark Schwed (New York)
Associate Rosemary Morgan (New York)
Financing:
Partner Allison Liff (New York)
Associate Young Lee (New York)
Associate Brandon Cherry (New York)
Antitrust:
Partner Laura Wilkinson (Washington)
Associate Alexis Brown-Reilly (Washington)
Associate Neil Rigby (London)
Employee Benefits:
Partner Paul Wessel (New York)
Associate Joshua Gelfand (New York)
Associate Brian Hamano (New York)
Labor:
Counsel Lawrence Baer (New York)
Associate Valerie Wicks (New York)
Technology & IP Transactions:
Partner Charan Sandhu (New York)
Dennis Adams (New York) (not yet admitted to practice)
Environmental:
Partner Annemargaret Connolly (Washington)
Associate Thomas Goslin (Washington)
Insurance:
Partner Joseph Verdesca (New York)
Associate Gabriel Gershowitz (New York)
Regulatory Compliance:
Associate Timothy Welch (Washington)
Real Estate:
Counsel Elliot Ganchrow (New York)
Associate Anne Catherine Podolsky (New York)
