Deer Creek Holdings has agreed to recapitalize specialty chemical producer Basic Resources Inc. No financial terms were disclosed. As a result of the transaction, Basic Resources will be rebranded Avkem International. And, Maurice Murphy will come on board as both an operating partner and chairman of Avkem’s board of directors.
KNOXVILLE, TENNESSEE (PRWEB) SEPTEMBER 17, 2015
Basic Resources, Inc. announced today that it has entered into an agreement with Deer Creek Holdings, a private equity firm, as a part of a recapitalization transaction. This will allow non-active shareholders to generate liquidity for their personal estates and creates a strong foundation for continued growth and development of the company. Following the transaction, the company will be renamed Avkem International. David Youngblood, and Chief Operating Officer, Laurence Secrest, will continue in their roles and will have significant ownership in the new Company.
David Youngblood remarked that, “This begins an exciting new era for our employees, customers and suppliers. Our current shareholders have been great partners and stewards of the business since its founding in 1992. But as with any entrepreneur founded business, there comes a time when a transition can help a business reach the next level. To our founders’ credit, they have helped us find a unique partner that can support and enhance our plan for growth and development. Unlike most private equity firms that focus on a four to five year investment period, Deer Creek offers the much longer term, patient investment philosophy of a family holding company. This philosophy fits perfectly with our company and employees. Our new company will also greatly benefit customers and suppliers. With this new partnership we will have the resources and tools to exceed the needs and expectations of our business partners.”
Commenting on the investment, Paul Wolf, Managing Director at Deer Creek stated, “We are very excited about our new relationship with David, Laurence and the entire team at Basic Resources. This company has all of the fundamental characteristics that we look for in a business: a history of strong growth, outstanding management, a leadership position in the markets it serves, and a reputation for quality. We look forward to supporting the company as it looks to expand further, both organically and through acquisition. The new company name, Avkem International is intended to highlight the strengths and future growth of the Company as a premier advanced specialty chemical producer.”
Avkem leadership will also be augmented with the addition of Maurice Murphy as an Operating Partner and Chairman of Avkem’s Board of Directors. Mr. Murphy is an accomplished executive with extensive experience as Chief Executive of multiple international industrial businesses.
About Deer Creek Holdings: Deer Creek Holdings is a private equity investment firm that seeks to partner with entrepreneurial companies to generate exceptional growth and returns. Deer Creek combines the investment discipline of a prominent private equity firm with the long term, patient investment philosophy of a family holding company. Our investment goals are tied to the long-term success of a business, not the four to five year holding requirements of traditional private equity. Because of this, we can be patient and invest in strategies that will yield above market growth over an extended period of time. We accomplish this by providing flexible capital solutions, resources and strong support for our manager-partners.
About Avkem International: Avkem’s predecessor, Basic Resources, Inc., has been privately held since it was founded in 1992. Its mission is to support the metals industry with superior quality and unmatched service through long-term partnerships with its customers, suppliers, employees and community. Over the past 20 years, Basic Resources has leveraged its supply chain and customer service to provide optimal, economic solutions for its customers.