Uni-World and Brightwood Acquire VanDeMark Chemical Inc.
Firms to Build Established Specialty Chemicals Business
New York, December 11, 2012 – Uni-World Capital L.P., a private equity firm, and Brightwood Capital Advisors LLC, a private investment firm, on November 30th jointly acquired VanDeMark Chemical Inc., Lockport, NY, a leading global producer of specialty, intermediate, and catalyst chemicals based on phosgenation chemistry. Brightwood also provided mezzanine financing to VanDeMark. The transaction was sourced through Sidereal Capital, which also invested in the equity and will appoint a director to the company.
VanDeMark, which has produced phosgene and phosgene derivatives since 1951, offers a range of more than 30 chemical compounds used in the production of paints and coatings, pharmaceuticals, plastics and polymers, adhesives and sealants, agricultural products and other end markets.
Uni-World Managing Partner Christopher P. Fuller said, “VanDeMark perfectly suits our investment criteria. It has an excellent management team, strong competitive positions and attractive markets. We are confident that the company will continue to grow as we identify new applications and end uses for a portfolio of compounds that is unique to VanDeMark.”
Brightwood Capital Advisors co-founder Sengal Selassie said, “VanDeMark is a great company with a blue-chip customer base and significant potential in both existing markets and as yet undeveloped end uses, and we look forward to VanDeMark’s continued growth.”
James E. Ashton PhD, an industry advisor to both Uni-World and Brightwood, will join VanDeMark’s Board and serve as a technical advisor, helping to expand the company’s markets and operations.
Under the terms of the agreement, VanDeMark’s senior management will continue to be significant equity owners in the company. The team, which has been preparing the company for an expansion phase, will remain in their current positions as follows: Mike Kucharski, Chief Executive Officer, Paul Ameis, Chief Operating Officer, and Bob Bigos, Chief Financial Officer.
CEO Mike Kucharski, who joined VanDeMark in 1983 and subsequently expanded its phosgene derivatives business, said, “This agreement marries a long-established, successful business with new ownership that believes in the fundamentals of phosgenation chemistry and recognizes its future potential across a broad range of end uses.”
Kucharski added, “Since our spin-off from SNPE in 2007, we have been readying the company’s operations and facilities for expansion. We now have the ownership and financial resources to take the next step in that growth plan.”
VanDeMark has approximately 85 employees and will continue to be based in Lockport, N.Y.
League Park Advisors advised the seller in the transaction.
VanDeMark manufactures phosgene derivatives and is North America’s leading producer of merchant phosgene. The company’s custom and specialty chemicals are used in the pharmaceutical, agricultural-chemical, polymer, and fine chemical industries. In addition, VanDeMark’s proprietary Para-Tolunesulfonyl Isocyante (PTSI) has wide application removing moisture from urethane formulations during the manufacture of adhesives, sealants, paints and coatings to enhance the quality and extend the shelf-life of the end products.
About Brightwood Capital Advisors, LLC
Based in New York, NY, Brightwood Capital specializes in providing growth capital to U.S.-based, small- and medium-sized businesses targeting companies with EBITDA of $5-$50 million. Brightwood has extensive experience in numerous industries including Business Services, Healthcare, Energy, Technology /Telecommunications and Franchising. More information can be found at http://www.brightwoodlp.com.
About Uni-World Capital, L.P.
Uni-World Capital, L.P. is a private equity firm focused on making leveraged buyout and growth equity investments in lower-middle market companies. The firm seeks to partner with management teams where it can leverage its team’s collective business experience, corporate relationships and strategic and financial expertise in order to help enhance a company’s strategic positioning and drive profitable growth. More information can be found at http://www.uniworldcapital.com.
For Uni-World and Brightwood:
Brian Peiritsch, Ketchum