M&A Deal Summary

KMG Chemicals Acquires Flowchem

On April 24, 2017, KMG Chemicals acquired energy services and equipment company Flowchem from Arsenal Capital Partners, Greyrock Capital Group, Triangle Capital and Kayne Anderson Capital Advisors for 495M USD

Acquisition Highlights
  • This is KMG Chemicals’ 1st transaction in the Energy Services and Equipment sector.
  • This is KMG Chemicals’ largest (disclosed) transaction.
  • This is KMG Chemicals’ 4th transaction in the United States.
  • This is KMG Chemicals’ 2nd transaction in Texas.
Investment Fate
  • Flowchem was divested to a consortium of buyers in 2024.

M&A Deal Summary
Date 2017-04-24
Target Flowchem
Sector Energy Services and Equipment
Buyer(s) KMG Chemicals
Sellers(s) Arsenal Capital Partners
Greyrock Capital Group
Triangle Capital
Kayne Anderson Capital Advisors
Deal Type Add-on Acquisition
Deal Value 495M USD
Advisor(s) KeyBanc Capital Markets (Financial)

Target

Flowchem

Waller, Texas, United States
website
Flowchem is a global provider of drag-reducing agents, related support services and equipment to midstream crude oil and refined fuel pipeline operators. Drag reducing agents, also known as DRAs, are specialty chemicals injected into midstream pipelines to reduce friction near the pipeline walls and within the turbulent fluid flowing through the pipeline network. Flowchem was founded in 2001 and is based in Waller, Texas.

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Buyer(S) 1

Buyer

KMG Chemicals

Fort Worth, Texas, United States

website

Category Company
Founded 1992
Sector Chemicals
Employees733
Revenue 320M USD (2015)
DESCRIPTION

KMG Chemicals is a provider of specialty chemicals. KMG grows by acquiring and optimizing stable chemical product lines and businesses with established production processes. Its operations are focused on the electronic chemicals and performance products markets. KMG Chemicals is based in 1992 and is based in Fort Worth, Texas.

DEAL STATS #
Overall 6 of 6
Sector (Energy Services and Equipment) 1 of 1
Type (Add-on Acquisition) 4 of 4
State (Texas) 2 of 2
Country (United States) 4 of 4
Year (2017) 2 of 2
Size (of disclosed) 1 of 5
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2017-01-31 Sealweld

Calgary, Alberta, Canada

Sealweld is a provider of high-performance products and services for industrial valve and actuator maintenance, including lubricants, sealants, cleaners, valve fittings, tools and equipment. Sealweld was founded in 1969 and is based in Calgary, Alberta.

Buy $17M

Seller(S) 4

SELLER

Arsenal Capital Partners

New York, New York, United States

Investor Investor Investor Investor Investor

website

Category Private Equity Firm
Founded 2000
PE ASSETS 10.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Arsenal Capital Partners is a private equity firm focused on middle-market healthcare, specialty industrial, and financial service companies. Specifically, Arsenal looks to acquire businesses in the areas of specialty chemicals, aerospace/defense, transportation, environmental services, business services, insurance, asset management, financial technology, medical products, healthcare IT, and healthcare contract research/manufacturing. The Firm typically seeks to commit $50 to $300 million per investment in profitable businesses with at least $10 million of EBITDA. Funds are generally used to support buyouts, recapitalizations, growth financings, consolidations, and divestitures. The Firm avoids investing in companies reliant on high levels of technology. Arsenal Capital Partners was formed in 2000 and is headquartered in New York City.

DEAL STATS #
Overall 19 of 34
Sector (Energy Services and Equipment) 1 of 1
Type (Add-on Acquisition) 10 of 16
State (Texas) 4 of 6
Country (United States) 19 of 31
Year (2017) 1 of 3
Size (of disclosed) 4 of 5
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2016-10-05 Chromaflo Technologies

Ashtabula, Ohio, United States

Chromaflo Technologies is a supplier of colorant systems, chemical and pigment dispersions, serving customers in architectural and industrial coatings as well as the thermoset composites market. Chromaflo Technologies was founded in 2012 and is based in Ashtabula, Ohio.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2017-07-11 Certara

Princeton, New Jersey, United States

Certara engages in model-informed drug development and regulatory science, focused on optimizing drug development and improving health outcomes. Certara was founded in 2008 and is headquartered in Princeton, New Jersey.

Sell $850M
SELLER

Greyrock Capital Group

Walnut Creek, California, United States

Investor Investor Investor Investor Investor

website

Category Mezzanine Finance Firm
Founded 2002
PE ASSETS 350M USD
Size Middle-Market
Type Sector Agnostic
DESCRIPTION

Greyrock Capital Group provides mezzanine debt and equity capital to finance buyouts, recapitalizations and growth needs of middle market companies. Greyrock looks to invest between $8 and $40 million of equity and/or junior capital in companies with minimum revenues of $10 million and at least $2 million of EBITDA. Greyrock prefers companies in defensible markets with low cost structures. Greyrock Capital was formed in 2002 and has offices in San Francisco, California; Chicago, Illinois; and Westport, Connecticut.

DEAL STATS #
Overall 30 of 45
Sector (Energy Services and Equipment) 1 of 1
Type (Add-on Acquisition) 16 of 23
State (Texas) 1 of 3
Country (United States) 30 of 45
Year (2017) 3 of 5
Size (of disclosed) 3 of 5
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2017-02-06 Information innovators

Springfield, Vermont, United States

Information innovators, Inc. is a provider of IT services and solutions to IT and health-focused clients across the federal government. It offer a range of services including program & project management, security & information assurance, systems design & integration, telecommunications consulting and enterprise architecture support.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2017-05-11 Bentec Medical

Woodland, California, United States

Bentec Medical specializes in contract manufacturing of silicone medical components and devices. Bentec Medical also designs, manufactures, and distributes specialized silicone products used in Pediatrics, Plastics & Reconstructive Surgery, ENT, Interventional Radiology, Oncology, Cardiology, and Urology. Bentec Medical was founded in 1994 and is based in Woodland, California.

Buy -
SELLER

Triangle Capital

Raleigh, North Carolina, United States

website

Category Private Equity Firm
Founded 2007
Size Middle-Market
Type Sector Agnostic
DESCRIPTION

DEAL STATS #
Overall 45 of 70
Sector (Energy Services and Equipment) 2 of 3
Type (Add-on Acquisition) 22 of 33
State (Texas) 6 of 6
Country (United States) 45 of 69
Year (2017) 3 of 7
Size (of disclosed) 3 of 7
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2017-03-02 Grindmaster-Cecilware

Louisville, Kentucky, United States

Grindmaster-Cecilware Corp. is a manufacturer of hot, cold and frozen beverage dispensing equipment including coffee machines.

Sell $108M
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2017-04-26 APM Holdings

United States

APM Holdings LLC is a manufacturer of high-purity chemicals for the pharmaceutical, biopharmaceutical, semiconductor and laboratory markets.

Buy -
SELLER

Kayne Anderson Capital Advisors

Los Angeles, California, United States

Investor Investor Investor Investor Investor

website

Category Asset Manager
Founded 1984
PE ASSETS 8.6B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Kayne Anderson Capital Advisors is an alternative investment management firm focused on hedge funds, public funds, energy private equity, growth private equity, real estate private equity, and mezzanine finance opportunities. Kayne's energy private equity group focuses on $20 to $100 million investments in high-growth exploration and production, midstream and oilfield service companies. The energy group considers both majority or minority stakes in public and private businesses. Kayne's growth private equity practice involves structured investments in public and private companies looking for capital to finance expansion. This group will also consider middle-market leveraged transactions and management buyouts. Kayne's real estate private equity group invests in established, cash-flow generating projects. Areas of interest include student housing and campus-oriented retail properties, amongst other opportunistic investments. The Group looks for acquisitions of $25 to $100 million. Kayne's mezzanine team looks to provide $20 to $35 million of capital for mid-market businesses with $100 to $500 million of sales and $10 to $50 million of EBITDA. Kayne Capital Advisors was formed in 1984 and is based in Los Angeles with additional offices in Armonk, New York; New York City, and Houston.

DEAL STATS #
Overall 47 of 80
Sector (Energy Services and Equipment) 4 of 5
Type (Add-on Acquisition) 19 of 31
State (Texas) 20 of 32
Country (United States) 40 of 69
Year (2017) 5 of 10
Size (of disclosed) 6 of 14
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2017-03-14 Rage Frameworks

Westwood, Massachusetts, United States

Rage Frameworks, Inc. is a provider of enterprise mission critical Business Process Automation and Big Data solutions and products as a managed service, based on pioneering and patented technology.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2017-05-19 Flywheel Bakken

Oklahoma City, Oklahoma, United States

Flywheel Bakken is a privately held oil and natural gas exploration and production company. Flywheel Bakken is focused on the acquisition and development of large producing oil and gas assets primarily in the Rockies and Mid-Continent regions. Flywheel Bakken was founded in 2017 and is based in Oklahoma City.

Buy -
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