Return to search

PE-owned Citadel completes TCG acquisition

Citadel, which is owned by HGGC and Charlesbank, has closed its buy of The Composites Group. No financial terms were disclosed. Headquartered in Highland Heights, Ohio, The Composites Group is a maker of engineered composite compounds.

PRESS RELEASE

WEST CHICAGO, IL — November 6, 2014 — Private equity firms HGGC and Charlesbank Capital Partners, with portfolio company Citadel Plastics Holdings, (“Citadel” or “the Company”), today announced they have completed the acquisition of The Composites Group (“TCG”). The deal brings together Citadel, a leading global provider of thermoplastic and engineered composite compounds, with TCG, a top manufacturer of engineered composite compounds.

The TCG acquisition, which marks the second transaction completed by the team of HGGC, Charlesbank and Citadel in the last 12 months, meaningfully expands Citadel’s portfolio of industry-leading capabilities and builds the Company’s market presence in attractive end markets such as energy, aerospace and healthcare.

“TCG strategically enhances Citadel’s positioning in the market, strengthening the Company’s ability to deliver customer solutions across a growing portfolio of product and material capabilities,” said Gary Crittenden, HGGC Chairman, who also serves as Chairman of Citadel.

“We are excited to bring the collective capabilities of Citadel and TCG to our global customer base, now spanning an even broader set of industries,” added Brandon White, Managing Director of Charlesbank, who also serves on the Board of Citadel.

With this acquisition and the addition of Lucent Polymers in December 2013, Citadel has significantly expanded its business, with revenue increasing from approximately $300 million to approximately $525 million. Further, the attractive mix of the acquired businesses, along with the operational excellence displayed by the Citadel team, allow for an increased earnings profile in addition to more avenues for revenue growth.

“Our Partners and our team did a great job in recognizing the fit between Citadel and TCG,” said Mike Huff, CEO of Citadel. “The shared organizational philosophies and the complementary capabilities and commercial approaches will allow us to quickly identify valuable ways to deliver solutions for our customers.”

The acquisition of TCG will be the eighth plastics-related acquisition for Citadel since 2007 and the 39th overall acquisition since 2008 for HGGC, which has a controlling interest in Citadel. This acquisition, along with the 2013 acquisition of Lucent Polymers, accelerates the evolution of Citadel into a global leader of highly engineered thermoplastic and engineered composite compounds.

Kirkland & Ellis LLP is serving as Citadel’s legal counsel.

About HGGC
Based in Palo Alto, California, HGGC is a leading private equity firm focusing on leveraged buyout, recapitalizations and growth equity transactions in the middle-market. HGGC, which has raised $2 billion of committed capital, seeks to partner with strong management teams and founders to build companies capable of generating sustainable growth. With years of collective deal and operational experience, HGGC brings best practices from private equity and global corporations to help middle-market businesses in a wide range of industries outperform the market. For more information, visit www.hggc.com.

About Charlesbank
Based in Boston and New York, Charlesbank is a middle-market private equity investment firm managing more than $3 billion of capital. Charlesbank focuses on management-led buyouts and growth capital financings, typically investing $50 million to $150 million per transaction in companies with enterprise values of $100 million to $750 million. The firm seeks to partner with strong management teams to build companies with sustainable competitive advantages and excellent prospects for growth. For more information, visit www.charlesbank.com.

About Citadel Plastics Holdings, Inc.
HGGC of Palo Alto, California, and Boston-based Charlesbank Capital Partners are the primary owners of Citadel. Citadel is a leading provider of custom material solutions including both thermoplastics and engineered composites products. Citadel’s end markets include automotive, electrical, construction, HVAC, home and garden, appliance and energy. Formed in 2007 and built through a series of cornerstone and tuck-in acquisitions, Citadel’s customer-engineered solutions, stable margin profile, blue-chip customer base and global operational excellence provide attractive opportunities for future growth. Citadel is headquartered in West Chicago and has a global workforce spread across eighteen plants in seven countries. For more information, visit www.citadelplastics.com.

About The Composites Group
The Composites Group offers a comprehensive portfolio of engineered composite compounds, including high-performance fiberglass and carbon fiber compounds, and parts supported by industry leading research and development capabilities. TCG sells its compounds and complete product solutions to a diverse set of customers across end markets that include aerospace, automotive, defense, electrical, energy, heavy machinery and recreation. TCG is headquartered in Highland Heights, Ohio, with manufacturing facilities located in northeastern Ohio and Bay City, Michigan. For more information, visit thecompositesgroup.com