U.S. private equity firm HIG Capital has acquired Recochem Inc, a Montréal-based manufacturer, marketer and distributor of aftermarket transportation and household fluids.
Terms weren’t released for the deal, which saw HIG acquire Recochem from Swander Pace Capital. Swander Pace bought the business in 2014.
Founded in 1951, Recochem’s products span branded, private label and bulk offerings and include coolant, windshield wash fluid, diesel exhaust fluid and a range of household fluids and industrial chemicals.
President and CEO Richard Boudreaux said the partnership with HIG will support the company’s “numerous opportunities to expand globally.”
Recochem is Swander Pace’s third exit from a Canadian portfolio company over the past year and a half.
H.I.G. Capital Completes Acquisition of Recochem, Inc.
September 06, 2018
MIAMI–(BUSINESS WIRE)–H.I.G. Capital (“H.I.G.”), a leading global private equity investment firm with over $25 billion of equity capital under management, is pleased to announce that one of its affiliates has acquired Recochem, Inc. (“Recochem” or the “Company”) from an affiliate of Swander Pace Capital (“Swander Pace”), in partnership with Recochem management. Terms of the transaction were not disclosed.
Founded in 1951 and headquartered in Montreal, Quebec, Canada, Recochem is a global leader in manufacturing, marketing and distributing aftermarket transportation and household fluids. The Company’s product portfolio spans branded, private label and bulk offerings and includes coolant, windshield wash fluid, diesel exhaust fluid and a broad range of household fluids and industrial chemicals. The Company generates approximately $500 million Canadian Dollars (“CAD”) of net sales annually, serving consumers and industrial customers worldwide through its operations in Canada, Europe, Australia, China, India and the Asia-Pacific region.
Richard Boudreaux, President and CEO of Recochem, commented, “We are very excited about partnering with H.I.G. to support Recochem’s next phase of growth and strengthen our market leadership. The Company continues to have numerous opportunities to expand globally and H.I.G.’s experience in our sector and global presence will help us effectuate our strategic plan.”
“We are very excited to partner with the Recochem management team who have a proven track record, doubling the Company’s profitability in the last four years,” added Keval Patel, Managing Director at H.I.G. “The Company’s diverse product portfolio, strong brand presence, unparalleled global distribution, uniquely position it to capitalize on growth opportunities within the global aftermarket transportation & household fluids market. We look forward to working with Recochem and supporting its next stage of growth.”
Recochem represents H.I.G.’s 19th acquisition in the chemical sector since 2008 and becomes its 7th current platform investment in the sector.
About Recochem, Inc.
Founded in 1951 in Montreal, Recochem has grown into a leading manufacturer and marketer of branded, private label and bulk transportation and household fluids for consumers and industrial customers worldwide. The Company operates a global platform, with a network across Canada, Europe, Australia, China, India and the Asia Pacific region. Recochem’s strong reputation in the markets it serves has earned the Company vendor appreciation awards from its customers and long-standing relationships with its suppliers and partners around the world. With innovation and agility built into its DNA, Recochem is poised to continue its expansion into global markets while maintaining its core values of exceptional customer service, consistent product quality and environmental stewardship. For more information, visit www.recochem.com.
About H.I.G. Capital
H.I.G. is a leading global private equity and alternative assets investment firm with over $25 billion of equity capital under management*. Based in Miami, and with offices in New York, Boston, Chicago, Dallas, Los Angeles, San Francisco, and Atlanta in the U.S., as well as international affiliate offices in London, Hamburg, Madrid, Milan, Paris, Bogotá, Mexico City, Rio de Janeiro and São Paulo, H.I.G. specializes in providing both debt and equity capital to small and mid-sized companies, utilizing a flexible and operationally focused / value-added approach:
1. H.I.G.’s equity funds invest in management buyouts, recapitalizations and corporate carve-outs of both profitable as well as underperforming manufacturing and service businesses.
2. H.I.G.’s debt funds invest in senior, unitranche and junior debt financing to companies across the size spectrum, both on a primary (direct origination) basis, as well as in the secondary markets. H.I.G. is also a leading CLO manager, through its WhiteHorse family of vehicles, and manages a publicly traded BDC, WhiteHorse Finance.
3. H.I.G.’s real estate funds invest in value-added properties, which can benefit from improved asset management practices.
Since its founding in 1993, H.I.G. has invested in and managed more than 300 companies worldwide. The firm’s current portfolio includes more than 100 companies with combined sales in excess of $30 billion. For more information, please refer to the H.I.G. website at www.higcapital.com.
* Based on total capital commitments managed by H.I.G. Capital and affiliates.