Cerberus Capital Management has closed its previously announced acquisition of Pearland, Texas-based Cyanco, a producer of sodium cyanide, from Oaktree Capital Management LP. No financial terms were disclosed.
NEW YORK, March 19, 2018 /PRNewswire/ — Cerberus Capital Management, L.P. today announced the completion of the previously announced acquisition of Cyanco Holding Corp. by a Cerberus affiliate from funds managed by Oaktree Capital Management, L.P. The transaction closed on March 16, 2018.
Cyanco is the largest global producer of sodium cyanide, a critical input in the gold and silver mining industry. The company will remain headquartered in Pearland, Texas, and will continue to operate its manufacturing facilities in Nevada and Texas and delivery terminals in Wyoming, Quebec, and Mexico, enabling Cyanco to efficiently and reliably deliver its products to customers throughout the Americas and around the world.
Dev Kapadia, Senior Managing Director of Cerberus and Co-Chair of the Cerberus Private Equity Investment Committee, said: “With its proven business model and leadership in safety, reliability, and customer service, Cyanco has been a trusted partner to the gold and silver mining industry for nearly three decades. Cerberus is excited to work alongside Cyanco’s management team to build upon its track record of success, accelerate its existing growth strategy, and further strengthen its competitive position.”
Jeffrey Davis, President and CEO of Cyanco, said: “This closing is an important step for our company’s future and marks the beginning of our partnership with Cerberus, a firm with an impressive track record of operational excellence. Together, we will work to drive Cyanco’s next phase of growth, while continuing to provide our customers with superior products, services, and technology.”
Cyanco will continue to be led by its current management team. As part of its investment, Cerberus will be putting in place a new board of directors for Cyanco. The new board will be chaired by Daniel Ajamian, an executive who has been Chairman of several other Cerberus portfolio companies. In addition to Mr. Ajamian, Mr. Davis will continue his role on the Cyanco board and will be joined by executives from Cerberus and other executives with operating experience.
About Cerberus Capital Management, L.P.
Established in 1992, Cerberus Capital Management, L.P. is a global leader in alternative investing with more than US $34 billion under management across complementary credit, private equity, and real estate strategies. From its headquarters in New York City and network of affiliate and advisory offices in the U.S., Europe, and Asia, Cerberus has the on-the-ground presence to invest in multiple asset classes globally.
Headquartered in Pearland, Texas, Cyanco is the largest global producer of sodium cyanide with manufacturing facilities in Nevada and Texas serving customers in North America, Latin America, and Africa. Cyanco’s Applied Technology provides consulting services, laboratory support, and cyanide processing technologies to assist customers in optimizing their metal recoveries and sodium cyanide usage throughout the mine lifecycle. Cyanco prides itself on its commitment to safety, and is one of the original signatories to the International Cyanide Management Code (ICMC) and is represented on the Industry Advisory Group to the International Cyanide Management Institute. All of Cyanco’s facilities are ICMC certified.