DuBois Chemicals, which is backed by The Jordan Company LP, has acquired BHS Specialty Chemicals, a maker of specialty chemicals focused on food safety and water treatment solutions. The seller was Post Capital Partners. No financial terms were disclosed. Greentech Capital Advisors served as financial adviser to BHS on the transaction.
Correction: A headline for this story incorrectly stated that Post has sold DuBois Chemicals to BHS. That is wrong. DuBois Chemicals is buying BHS. The headline has been changed.
New York, July 17, 2017 – Post Capital Partners today announced the sale of BHS Specialty Chemicals, a specialty chemical manufacturer and distributor focused on food safety and water treatment solutions, to DuBois Chemicals. DuBois, a portfolio company of The Jordan Company, L.P., is a developer and manufacturer of specialty chemicals solutions to the general manufacturing, pulp and paper making, transportation cleaning, and water treatment segments. The sale was completed on June 30, 2017. This is Post Capital’s second exit in just over six months, following the recapitalization of Invo HealthCare Associates in December 2016.
Post Capital Partners recapitalized BHS Specialty Chemicals (formerly BHS Marketing) in July 2010 in partnership with chemical industry veteran Phil Johnson and BHS’ founders, Bruce Schechinger and Michael Merlo. Mr. Johnson became Chairman and CEO of BHS under Post Capital’s “Executive-First” strategy, in which it partners with senior industry executives in sourcing, evaluating, acquiring and then leading portfolio companies.
Michael Pfeffer, Co-founder and Managing Director of Post Capital, said, “We are proud of our partnership with BHS and its management team. Phil executed on his vision of transforming BHS from primarily a commodity distribution business into a leading specialty chemical company for cleaning and sanitation and water treatment for the food processing sector.”
Mr. Johnson added, “When I first met Post Capital, I had a vision for the specialty chemical industry and an overwhelming desire to be both a CEO and owner and not just a ‘hired gun.’ Post Capital believed in me and provided the resources to help identify and acquire BHS. After the recapitalization, Post Capital provided the financial support and strategic guidance to help management execute on the plan and to transform the business, including the execution of three accretive add-on acquisitions.”
“The success of BHS is a great illustration of Post Capital’s ‘Executive-First’ strategy,” Mr. Pfeffer added. “Our investment team identified a talented executive in Phil and then worked with him on a proactive acquisition program to identify a compelling investment opportunity. Once we identified BHS, we partnered with Phil and BHS’ founders, Bruce and Michael, to transform the company into a leading player in its market. We are pleased with the success of BHS and wish the company and its team continued success in the future.”
Greentech Capital Advisors served as financial advisor to BHS on the transaction. Winston & Strawn and Benesch Friedlander Coplan & Aronoff acted as legal advisors and Crowe Horwath provided accounting and tax advice to BHS.
About BHS Specialty Chemicals
BHS Specialty Chemicals offers a complete spectrum of products and services to satisfy the chemical requirements of food manufacturers and other industries. An SQF 2000 Level II Certified Company, BHS provides chemicals approved and controlled for use in food manufacturing plants. Since 1998 the company has grown to become a prominent member of the chemical supplier industry. To learn more, visit http://www.BHSspecialtychemicals.com.
About Post Capital Partners
Post Capital Partners (http://www.postcp.com) is a private investment firm that makes both minority growth and control investments in businesses with repeat or recurring revenue models. Post Capital primarily employs an “Executive-First” deal sourcing and investment strategy in which it first identifies and partners with talented senior operating executives and then works proactively with those “Executive Partners” to identify investments. In addition to “Executive-First” platform searches, Post Capital also pursues management buyouts and growth capital investments. Based in New York City, Post Capital invests a committed capital fund with top-tier institutional and sophisticated private investors.
About DuBois Chemicals
Founded in 1920, DuBois provides specialty chemical solutions and services for manufacturing and transportation industries in North America, and is expanding into selected market sectors around the world. The company is committed to building sustainable partnerships with customers that reduce total costs through the delivery of innovative solutions supported with local technical service. DuBois specializes in the areas of metal finishing, paint pretreatment, metalworking fluids, lubricants, heat treating salts, quenchants, water and wastewater treatment, maintenance and equipment cleaning, food processing cleaning and sanitizing, transportation cleaning, and papermaking chemicals. For more information, please visit www.duboischemicals.com.