Investment Summary

Palo Duro Capital Exit Smart Chemical Solutions

On May 19, 2025, business development company Gladstone Investment and private equity firm Xyresic Capital invested in chemicals company Smart Chemical Solutions from Palo Duro Capital

Investment Highlights
  • This is Gladstone Investment’s 2nd and Xyresic Capital’s 1st transaction in the Chemicals sector.
  • This is Gladstone Investment’s 28th and Xyresic Capital’s 5th transaction in the United States.
  • This is Gladstone Investment’s 3rd and Xyresic Capital’s 2nd transaction in Texas.

Investment Summary

Date 2025-05-19
Target Smart Chemical Solutions
Sector Chemicals
Investor(s) Gladstone Investment
Xyresic Capital
Sellers(s) Palo Duro Capital
Deal Type Secondary Buyout

Target

Smart Chemical Solutions

Midland, Texas, United States
Smart Chemical Solutions is a chemical services and fluid logistics company primarily focused on the oil & gas industry. Smart Chemical Solutions is involved in bringing talented group of associates together to provide service to customers. Smart Chemical Solutions was founded in 2008 and is based in Midland, Texas.

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Investor(S) 2

DESCRIPTION

Gladstone Investment Corporation is a business development company focused on partnering with profitable lower middle-market companies in the manufacturing, consumer products, and business services sectors. The Firm looks for profitable businesses throughout the US where it can invest equity/debt capital of up to $75 million. Gladstone Investment Corporation was formed in 2005 and is based in McLean, Virginia.


DEAL STATS #
Overall 29 of 31
Sector: Chemicals M&A 2 of 2
Type: Secondary Buyout M&A Deals 5 of 5
State: Texas M&A 3 of 3
Country: United States M&A 28 of 30
Year: 2025 M&A 1 of 3
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2024-12-19 Nielsen-Kellerman

Boothwyn, Pennsylvania, United States

Nielsen-Kellerman designs manufactures and distributes rugged, waterproof environmental and sports performance instruments for active lifestyles and technical applications, including Kestrel Weather & Environmental Meters, Kestrel Ballistics Meters for long-range shooting accuracy, NK Electronics for Rowing and Paddling, and Blue Ocean Rugged Megaphones PA Systems. Nielsen-Kellerman was founded in 1978 and is based in Boothwyn, Pennsylvania.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2025-05-23 Sun State

Jacksonville, Florida, United States

Sun State is a commercial landscaping installation and maintenance provider serving clients from the Jacksonville area. Sun State is based in Jacksonville, Florida.

Buy -
DESCRIPTION

Xyresic Capital is a hands-on private equity firm that looks to invest in and partner with lower middle-market companies. Areas of interest include consumer products, hospitality/leisure, manufacturing, and business services. Xyresic Capital was formed in 2019 and is headquartered in Chicago, Illinois.


DEAL STATS #
Overall 5 of 5
Sector: Chemicals M&A 1 of 1
Type: Secondary Buyout M&A Deals 1 of 1
State: Texas M&A 2 of 2
Country: United States M&A 5 of 5
Year: 2025 M&A 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2023-09-13 E3

Kilgore, Texas, United States

E3 provides advanced pressure management solutions for oil and gas well completions. It leverages patented and proprietary equipment to provide improved operational efficiency and superior safety across every major oil and gas basin in the United States. E3 is based in Kilgore, Texas.

Buy -

Seller(S) 1

DESCRIPTION

Palo Duro Capital is a private equity firm focused on acquiring and growing lower middle-market companies throughout the US and Canada. The Firm looks to be a hands-on investor, looking to help companies grow through its domain expertise and network of industry relationships. Areas of interest include building materials, specialty chemicals, and industrial manufactured products. Prospective companies are typically profitable ($5 to $25 million of EBITDA) and have revenue of $25 to $150 million. Palo Duro Capital was formed in 2017 and is headquartered in Dallas, Texas.


DEAL STATS #
Overall 2 of 2
Sector: Chemicals M&A 1 of 1
Type: Secondary Buyout M&A Deals 2 of 2
State: Texas M&A 1 of 1
Country: United States M&A 2 of 2
Year: 2025 M&A 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2024-03-25 Atmos

Newtown Square, Pennsylvania, United States

Atmos is a full-service environmental solutions company that designs and manufactures customized application equipment along with a full range of environmentally friendly specialty chemical products for solid waste, environmental remediation, and infrastructure end-market applications. Atmos is based in Newtown Square, Pennsylvania.

Sell -