Alantra advised on the Sale of Two Specialty Chemical Companies

Aug 2018

Sell-side advisory

Alantra is pleased to announce that L.C. Group has sold Crowley Chemical, Inc. and Rusmar, Inc. to Palo Duro Capital, LLC. The transaction closed on August 31, 2018 and the financial terms of the deal were not disclosed. Alantra acted as the exclusive financial advisor to L.C. Group on the sale of the companies.

L.C. Group consists of two market-leading niche specialty chemical companies. Crowley Chemical, headquartered in New York City, formulates and blends a range of specialty chemicals used primarily in polyurethane CASE (coatings, adhesives, sealants and elastomers) applications. Crowley’s chemicals are utilized as extenders, additives, and modifiers to support the performance and reduce the costs of its customers’ polyurethane systems. West Chester, Pennsylvania-based Rusmar produces proprietary foam coatings and the associated application equipment which together are used to comply with odor control regulations and to address critical health and safety applications such as dust, odor, fire and VOC emission suppression.

“We are delighted to complete the sale of Crowley and Rusmar on behalf of the owners of the L.C. Group,” said Paul Colone, Managing Director & Partner with Alantra. “Both companies are attractive niche market leaders with clear and meaningful near-term growth opportunities.”

“It was a pleasure working with the Crowley and Rusmar management team and we wish them well with their new investors,” said Jonathan Tetirick, Vice President with Alantra. “This transaction represents an excellent addition to Alantra’s global track record of advising specialty chemical companies on successful sell-side and buy-side mandates.”

Bill Callanan, CEO of Crowley Chemical, commented, “On behalf of the L.C. Group we are grateful for the thoughtful and dedicated guidance that the Alantra team provided throughout the process. We are very pleased with the outcome and look forward to growing Crowley and Rusmar with Palo Duro’s support.”

Palo Duro Capital is a Dallas, Texas-based lower middle market private equity firm focused on industrial companies. Crowley and Rusmar will become part of newly-formed CCR Specialty Chemicals, LLC (CCR), a specialty formulator of performance chemicals serving a diverse range of end markets.