SK Capital Partners said Feb. 2 that it closed its buy of Niacet Corp. Financial terms weren’t announced. Kelly Brannen will continue to serve as CEO and will retain a stake in the company. Niacet, of Niagara Falls, New York, produces specialty ingredients for food, feed, and pharmaceutical applications. KeyBanc Capital Markets provided financing. Latham & Watkins acted as legal counsel to SK Capital while Valence Group was financial advisor to Niacet.
February 02, 2017 06:00 AM Eastern Standard Time
NEW YORK–(BUSINESS WIRE)–SK Capital Partners, a private investment firm with a disciplined focus on the specialty materials, chemicals, and pharmaceutical sectors, announced today that it has completed the acquisition of Niacet Corporation, a leading producer of specialty ingredients for food, feed, and pharmaceutical applications and a global leader in propionates and acetates. Headquartered in Niagara Falls, New York, Niacet currently serves more than 300 customers in 57 countries and employs approximately 190 people across its headquarters and two production facilities.
SK Capital is recapitalizing Niacet in partnership with Kelly Brannen, who will continue to serve as CEO and retain a significant stake in the Company. The Brannen family purchased Niacet from Union Carbide in 1978 and grew the Company into the worldwide leader in its core products.
Jack Norris, a Managing Director of SK Capital, noted, “The Niacet investment is consistent with SK Capital’s strategy of investing in niche market leaders in segments where we have significant industry, operating, and ownership experience and where we can be a strong value-added partner. With the Niacet acquisition, we are leveraging our expertise in the specialty ingredients sector, which includes our ownership of AEB Group and Noramco, as well as our previous success acquiring family businesses alongside management to support the next phase of their growth and improvement.”
Mr. Brannen noted, “As a continuing owner of a significant share of the business, I am excited to partner with SK Capital, which is comprised of experienced and knowledgeable investors in our space who can provide insights, resources, and capital to support our business improvement and accelerate our growth. On behalf of the entire Brannen family, I would like to thank our employees for their dedication and hard work in driving the Company’s success to date.”
Mr. Norris added, “We look forward to working closely with Kelly, who we have known for almost a decade, and his management team to facilitate the realization of their strategic objectives. This investment exemplifies the power of our sector-focused strategy where significant commercial and cost synergies can be generated across portfolio companies.”
Latham & Watkins acted as legal counsel to SK Capital and KeyBanc Capital Markets provided committed financing for the transaction. The Valence Group was exclusive financial advisor to Niacet Corporation.
ABOUT SK CAPITAL
SK Capital is a private investment firm with a disciplined focus on the specialty materials, chemicals and healthcare sectors. We target investments where we can leverage our industry and operating experience to improve companies’ strategic positioning, operational execution, growth and cash flow. The firm currently has over $1.9 billion of assets under management. Our portfolio companies generate revenues of over $5.0 billion annually and employ approximately 8,000 people.
More information about SK Capital can be found at www.skcapitalpartners.com.
ABOUT NIACET CORPORATION
Niacet is a leading producer of organic salts, including propionates and acetates, serving the food, feed, pharmaceutical, and technical industries. With two fully automated manufacturing sites, located in Niagara Falls, NY and Tiel, The Netherlands, Niacet offers world-class quality products to global markets that fill vital needs in a broad range of applications that are essential to everyday life including food preservation, antibiotic formulation, dialysis treatment and energy production.
For more information, please visit: www.niacet.com.