United Initiators is pleased to announce today that it has acquired Syrgis Performance Initiators (SPI) from Edgewater Capital Partners. The company United Initiators is owned by Vision Capital and Speyside Equity.
SPI is a leading manufacturer of customer tailored formulations of ketone peroxides in North America and Europe and benzoyl peroxidesin North America. Both products are organic peroxide initiators used in the production of thermoset composite materials. Headquartered in the US, SPI has a global reach with manufacturing locations in the US and Sweden in addition to trading operations in Shanghai. In 2011, SPI had total net sales of approx. $50 million.
Acquiring SPI will enable United Initiators to expand its product range and geographic reach. The acquisition will provide United Initiators with improved access to the organic peroxides markets across the Americas, Europeand Asia-Pacific in addition to a strong global persulfates position, facilitating opportunities for future growth and expansion. The combined turnover of United Initiators and SPI is expected to exceed €200million. Madison Capital Funding served as the Administrative Agent and sole lender for the financing of the transaction. Grace Matthews advised Edgewater Capital Partners on the sale of SPI.
Commenting on the acquisition, United Initiators CEO Ed Hoozemans said:
“We are delighted to announce our acquisition of SPI, whose market leading organic peroxide products will complement our existing initiators business. SPI is a highly regarded supplier of peroxides to the thermoset composite market segment, and we see significant opportunity to build upon its established customer relationships and operational capabilities in the Americas, Europe and Asia-Pacific.”
“With the support of our partners at Vision Capital and Speyside Equity, we are investing considerable resources to grow the business and this is an important step in creating a world leading player in speciality initiators.”
The shareholders commented as follows:
Dave Lamb, Head of PE – Europe at Vision Capital said:
“A hypothesis from our investment in United Initiators in 2011 and our partnering with Speyside Equity was the compelling opportunity for consolidation across the organic peroxides market, to capitalise on the international growth opportunities for these highly-specialised products. We believe that the integration of United Initiators and SPI’s complementary product ranges, established customer bases and manufacturing and distribution networks will create value and enable the company to access significant growth potential in previously under-exploited markets.”
Oliver Maier, Partner at Speyside Equity said:
“We believe that the acquisition of SPI is an important stepping stone relative to the consolidator role we designated to United Initiators, and proof to our partnership with Vision Capital.”
Chris Childres, Managing Partner at Edgewater Capital said:
“The acquisition of Syrgis Initiators provides United Initiators with the critical mass necessary to achieve a leading position in the growing composite materials markets. United Initiators/Syrgis will be able to differentiate itself from competitors through its full line of high quality products, innovative technology, global distribution network, and world-class technical customer service capabilities. ”
Andy Harris, CEO of Syrgis Performance Products said:
“The sale of Syrgis Performance Initiators to United Initiators allows a strategic combination of two leaders in the specialty organic peroxides industry that will provide greater value for customers and expanded opportunities for the combined organization and its employees. This divestiture creates value for the industry and the investors of Syrgis. We wish the best of success to the new organization.”
For further information, please contact:
T: +49 89 74422 458
Brunswick for Vision Capital:
Zoe Bird / Alison Kay
T: +44 (0) 20 7404 5959
Syrgis Performance Initiators:
T: +1 612 845 3462
T: +46 707317081
T: +1 917 575 6866
T: +1 734 674 1865
About Syrgis Performance Initiators:
Syrgis Performance Initiators manufactures organic peroxides that, when used in the production of reinforced and cast polymer composites products, initiate the gel and cure of the resin at room and elevated temperatures while increasing their durability. With manufacturing, sales and distribution facilities in Helena, Arkansas, USA and Köpmanholmen, Sweden, Syrgis Performance Initiators is the #1 manufacturer of methyl ethyl ketone peroxides (MEKP) in North America and ranked third in the world in organic peroxides for plastics and reinforced thermoset composites. Syrgis Performance Initiators is the leading producer of organic peroxide initiators used in the polymerization of unsaturated polyester, vinyl ester, styrenic and other resins.
About United Initiators
United Initiators is a market leader in high-grade peroxide chemicals. Its core competence is the production of organic peroxides and persulfates, which lay the groundwork for all fields of application in the chemical synthesis, from paper to astronautics. United Initiators is a major global persulfate manufacturer. Headquartered in Pullach, Germany, the company also has further production facilities for organic peroxides in the USA and Australia, as well as persulfates in China. United Initiators is owned by Vision Capital and Speyside Equity.