M&A Deal Summary

Argosy Private Equity, PNC Mezzanine Capital and Owner Resource Group Acquire Kmco

On July 12, 2012, private equity firm Argosy Private Equity, mezzanine finance firm PNC Mezzanine Capital and private equity firm Owner Resource Group acquired chemicals company Kmco

Acquisition Highlights
  • This is Argosy Private Equity’s 1st, PNC Mezzanine Capital’s 1st and Owner Resource Group’s 1st transaction in the Chemicals sector.
  • This is Argosy Private Equity’s 44th, PNC Mezzanine Capital’s 37th and Owner Resource Group’s 3rd transaction in the United States.
  • This is Argosy Private Equity’s 3rd, PNC Mezzanine Capital’s 3rd and Owner Resource Group’s 2nd transaction in Texas.
Investment Fate
  • Kmco was sold to a strategic buyer in 2020.

M&A Deal Summary

Date 2012-07-12
Target Kmco
Sector Chemicals
Buyer(s) Argosy Private Equity
PNC Mezzanine Capital
Owner Resource Group
Deal Type Buyout (LBO, MBO, MBI)

Target

Kmco

Houston, Texas, United States
Kmco LLC is an operator of specialty chemical company serving the automotive, petroleum, industrial, and agricultural markets. Kmco was founded in 1975 and is based in Houston, Texas.

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Buyer(S) 3

Buyer

Argosy Private Equity

Wayne, Pennsylvania, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1990
PE ASSETS 575M USD
Size Middle-Market
Type Sector Agnostic
DESCRIPTION

Argosy Private Equity is the private equity arm of Argosy Capital, an asset management firm. Argosy Private Equity provides both debt and equity capital to lower middle-market companies located throughout the US. Argosy focuses on growth companies with experienced management teams and revenues between $15 and $100 million and EBITDA of $3 to $9 million. Argosy looks to invest $5 - $20 million per transaction. Specific areas of interest include manufacturing, business services, franchising and Value added distributions. The Firm will consider a variety of transaction types, including MBO’s, recapitalizations, growth equity and acquisitions. Argosy was formed in 1990 and is based in Wayne, Pennsylvania.


DEAL STATS #
Overall 44 of 88
Sector: Chemicals M&A 1 of 1
Type: Buyout (LBO, MBO, MBI) M&A Deals 29 of 52
State: Texas M&A 3 of 8
Country: United States M&A 44 of 88
Year: 2012 M&A 4 of 6
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2012-05-31 Sussex Wire

Easton, Pennsylvania, United States

Sussex Wire, Inc. specializes in the design, manufacturing, and distribution of highly-engineered, specialty metal parts and components utilizing cold-forming technology. Sussex Wire was founded in 1974 and is based in Easton, Pennsylvania.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2012-07-23 Artisant Lane

Dallas, Texas, United States

Artisant Lane is a designer and manufacturer of high-end, made-to-order, upholstered furniture sold through private label, retail, and hospitality channels. Artisant Lane was founded in 1990 and is based in Dallas, Texas.

Buy -
Buyer

PNC Mezzanine Capital

Pittsburgh, Pennsylvania, United States

Investor Investor Investor Investor Investor


Category Mezzanine Finance Firm
Founded 1989
PE ASSETS 1.5B USD
Size Large
Type Sector Agnostic
DESCRIPTION

PNC Mezzanine Capital is the subordinated debt investing arm of PNC Bank. PNC Mezzanine looks to provide $10 to $50 million of junior capital to middle-market companies in a variety of industries. Prospective companies generally have revenues of $20 million and EBITDA greater than $4 million. Broad sectors of interest include niche manufacturing, value-added distribution, and business or consumer services. PNC will not invest in early-stage or technology-driven businesses; real estate, commodity-based or capital-intensive companies; businesses with high customer or vendor concentration; or declining businesses. PNC Mezzanine was formed in 1989 and is based in Pittsburgh, Pennsylvania.


DEAL STATS #
Overall 38 of 77
Sector: Chemicals M&A 1 of 2
Type: Buyout (LBO, MBO, MBI) M&A Deals 18 of 38
State: Texas M&A 3 of 6
Country: United States M&A 37 of 73
Year: 2012 M&A 3 of 7
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2012-06-12 Battenfeld Technologies

Columbia, Missouri, United States

Battenfeld Technologies, Inc. is a designer, developer and supplier of branded shooting and hunting accessories to the outdoor sporting goods industry.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2012-08-27 TRUE Sports

Memphis, Tennessee, United States

TRUE Sports is a designer, manufacturer, and supplier of golf club shafts as well as performance sports products including hockey sticks, lacrosse stick handles and other equipment. TRUE Sports manufactures both steel and graphite shafts and its brands include Dynamic Gold, Dynalite, Project X, Rifle, and Alloy Blue. TRUE Sports was founded in 1902 and is based in Memphis, Tennessee.

Buy -
DESCRIPTION

Owner Resource Group is a private investment firm focused on acquiring small, profitable companies with at least $3 million of EBITDA. The Firm is a generalist investor but has a preference for engineering-intensive manufacturing, service-supported distribution, and niche services companies. Owner Resource Group is a long-term investor and typically acquires majority positions. Owner Resource Group was established in 2007 and is headquartered in Austin, Texas.


DEAL STATS #
Overall 3 of 18
Sector: Chemicals M&A 1 of 2
Type: Buyout (LBO, MBO, MBI) M&A Deals 2 of 6
State: Texas M&A 2 of 5
Country: United States M&A 3 of 16
Year: 2012 M&A 1 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2010-08-03 Gila

Austin, Texas, United States

Gila LLC offers outsourced collections, payment processing and call center services to governmental entities, financial and higher education institutions nationwide. The Company provides a full suite of receivables management solutions, tailored to each client's specifications.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2012-10-09 Optimation Technology

Rush, New York, United States

Optimation Technology is a provider of engineering, automation, industrial construction and maintenance services, from concept stage through prototyping, all the way to full production-scale operations. Optimation Technology was founded in 1985 and is based in Rush, New York.

Buy -