M&A Deal Summary

Merit Capital Partners and Lenox Equity Partners Acquire Crown Carbon

On December 14, 2012, mezzanine finance firm Merit Capital Partners and private equity firm Lenox Equity Partners acquired chemicals company Crown Carbon

Acquisition Highlights
  • This is Merit Capital Partners’ 5th and Lenox Equity Partners’ 1st transaction in the Chemicals sector.
  • This is Merit Capital Partners’ 65th and Lenox Equity Partners’ 4th transaction in the United States.
  • This is Merit Capital Partners’ 1st and Lenox Equity Partners’ 1st transaction in Wyoming.

M&A Deal Summary

Date 2012-12-14
Target Crown Carbon
Sector Chemicals
Buyer(s) Merit Capital Partners
Lenox Equity Partners
Deal Type Recapitalization
Advisor(s) The Lenox Group LLC (Financial)

Target

Crown Carbon

Gillette, Wyoming, United States
Crown Carbon specializes in the formulation and application of proprietary specialty chemicals involved in the handling of various raw materials for the coal, steel, and utility industries. Crown Carbon was founded in 1979 and is based in Gillette, Wyoming.

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Buyer(S) 2

Buyer

Merit Capital Partners

Chicago, Illinois, United States

Investor Investor Investor Investor Investor


Category Mezzanine Finance Firm
Founded 1993
PE ASSETS 2.2B USD
Size Large
Type Sector Agnostic
DESCRIPTION

Merit Capital Partners is a private investment firm that targets investments in middle market manufacturing, distribution, and service based businesses. Merit looks for companies generating at least $25 million in sales and at least $4 million in EBITDA. Merit can provide both equity and junior capital financing and looks to commit at least $15 million per transaction. Prospective transaction situations include management buyouts, recapitalizations, growth financings, divestitures, unsponsored transactions, and ESOPs. Merit Capital will not invest in start-ups, turnarounds, real estate, specialty retail, or oil/gas opportunities. Merit Capital was originally known as William Blair Mezzanine Capital and became independent in 2004. Merit was formed in 1993 and is based in Chicago, Illinois.


DEAL STATS #
Overall 66 of 98
Sector (Chemicals) 5 of 6
Type (Recapitalization) 14 of 19
State (Wyoming) 1 of 1
Country (United States) 65 of 97
Year (2012) 5 of 6
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2012-08-01 RSA Engineered Products

Simi Valley, California, United States

RSA Engineered Products LLC designs and manufactures a broad array of highly-engineered airflow control systems for use in commercial and military aircraft. RSA Engineered Products LLC’s primary products include ducting, anti-icing and ozone products. The majority of RSA’s sales are comprised of proprietary part numbers exclusive to the Company. RSA sells to a broad customer base that spans a high number of both legacy and new aircraft platforms.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2012-12-31 Structural & Steel Products

Fort Worth, Texas, United States

Structural & Steel Products is a manufacturer and distributor of products used in the highway construction end-market, including overhead sign structures, guardrails, crash cushions, lighting poles and bridge decking. The Company manufactures tubular structures used in the communication and power transmission industries. Structural & Steel Products was founded in 1969 and is based in Fort Worth, Texas.

Buy -
Buyer

Lenox Equity Partners

Atlanta, Georgia, United States

Investor Investor Investor Investor


Category Private Equity Firm
Founded 2006
Size Small
Type Sector Agnostic
DESCRIPTION

Lenox Equity Partners is a private equity firm focused on investing in late-stage, mature companies. Lenox looks for privately-held companies as well as non-core divestitures and is willing to invest across the capital structure, including common/preferred equity commitments and mezzanine debt. Target businesses generally have revenues of $10 to $25 million and EBITDA of $1 to $5 million. Sectors of interest include healthcare services, chemical/mineral products and processing, rubber/plastic products, metal fabrication, industrial/commercial machinery, electronics, measuring instruments, and value-added distribution. Lenox Equity Partners is based in Atlanta, Georgia.


DEAL STATS #
Overall 4 of 4
Sector (Chemicals) 1 of 1
Type (Recapitalization) 1 of 1
State (Wyoming) 1 of 1
Country (United States) 4 of 4
Year (2012) 2 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2012-01-01 American BioCare

Troy, United States

American BioCare is a platform entity focused on distinctive health care services providers converging on the treatment of chronic, debilitating conditions in the home. American BioCare was formed in 1997 and is based in Troy, Michigan.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2016-02-05 ESP/SurgeX

Knightdale, North Carolina, United States

ESP/SurgeX is a manufacturer of power filtration and power protection technology for the office technology and mailing equipment industries.

Sell $130M