New York - Private investment groups Uni-World Capital LP and Brightwood Capital Advisors llc have jointly acquired VanDeMark Chemical Inc., of Lockport, New York, a leading global producer of speciality, intermediate, and catalyst chemicals based on phosgenation chemistry.
VanDeMark, which has produced phosgene and phosgene derivatives since 1951, offers a range of more than 30 chemicals used to make paints and coatings, pharmaceuticals, plastics and polymers, adhesives and sealants, agricultural products and other end markets.
The company says its proprietary para-toluenesulphonyl isocyanate (PTSI) is widely used in removing moisture from urethane formulations during manufacture of adhesives, sealants, paints and coatings, to enhance the quality and extend the shelf-life of the end products.
Uni-World managing partner Christopher 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 added, "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."
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.
James Ashton, 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 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: Mike Kucharski, chief executive officer, Paul Ameis, chief operating officer, and Bob Bigos, chief financial officer.
Kucharski, who joined VanDeMark in 1983 and 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 recognises 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."