Private equity firm American Securities buys Emerald Performance Materials

20:44 PM | June 4, 2014 | Natasha Alperowicz

American Securities (New York), a private equity firm, has announced that it has partnered with management and signed a definitive agreement to acquire Emerald Performance Materials (Cuyahoga Falls, OH), from an affiliate of Sun Capital Partners. The transaction is expected to close in the third quarter of 2014 and is subject to customary closing conditions and regulatory approvals. Financial terms of the transaction were not disclosed. Last year Sun Capital Partners appointed investment bank Lazard to advise it on a proposed sale of Emerald Performance Materials.
Emerald is a leading producer of specialty chemicals for niche consumer and industrial end-markets, which include flavors & fragrances, food & beverage, personal and household care, composites, structural adhesives, coatings, and flooring. The company's products enable end users to make goods that perform better through a variety of applications, such as adding color to paint and cosmetics, adding longevity to tires, imparting strength to adhesives and composites, providing scents to perfumes and soaps and preserving soft drinks. Emerald has eight operations and approximately 750 employees.
Candace Wagner, president and CFO of Emerald, said, "Over the past several years, we have continued to build a diverse family of market-leading brands, a blue chip customer base and a consistent record of annual revenue growth. We are excited to partner with American Securities as we look to innovate and produce the highest quality products available in the markets we serve, strengthen our operating focus and explore other initiatives to further expand our businesses."
Scott M. Wolff, managing director at American Securities, said, "Emerald represents a compelling investment opportunity and leverages our industry knowledge and track record in the specialty chemicals sector. We believe Emerald offers attractive growth opportunities, defensible market positions and a diverse portfolio of high quality businesses. We look forward to partnering with the seasoned management team to drive business performance."
Weil, Gotshal & Manges served as legal counsel to American Securities, and Kirkland & Ellis served as legal counsel to Emerald. Lazard and KeyBanc Capital Markets acted as financial advisors to Emerald.