SK Capital makes controlling investment in Tilley Chemical Company

Founded by the Tilley family in 1952, Tilley is a specialty chemical and lubricant distributor with value-added capabilities including storage, blending, packaging and regulatory and technical support.

SK Capital has a acquired a controlling interest in Tilley Chemical Company, a regional distributor and value-added service provider of specialty chemicals and lubricants. The Tilley family will retain a significant ownership stake and involvement in the company. Debt financing was provided by Madison Capital.

PRESS RELEASE

New York, NY and Baltimore, MD, January 7, 2021 — Tilley Chemical Company, Inc. (“Tilley” or the “Company”), a leading regional distributor and value-added service provider of specialty chemicals and lubricants, announced today that funds advised by SK Capital Partners, L.P. have made a controlling investment in the Company. SK Capital’s investment will serve as the basis for a new strategic partnership with the Tilley family, who will continue to retain a significant ownership stake and involvement in the Company.

Privately held since being founded by the Tilley family in 1952, Tilley is a leading specialty chemical and lubricant distributor with value-added capabilities including storage, blending, packaging and regulatory and technical support. The Company serves customers across a diverse set of regulated markets within the Mid-Atlantic region, including food and beverage, flavor and fragrance, household, industrial and institutional and life sciences. Additionally, Tilley’s lubricant division provides a comprehensive line of automotive and industrial lubricants and functional products for road transport, aviation and general industrial markets. Tilley operates two facilities in North America and employs approximately 100 people.

As a truly value-added distributor, Tilley acts as an extension of its suppliers’ direct selling force. Tilley specializes in serving highly regulated industries and offers technical and regulatory support on behalf of both suppliers and customers. The Company’s quality control program is supported by quality assurance and on-site testing. Furthermore, the Company has made significant investments in warehousing and infrastructure to enhance the value it brings to customers through flexibility and timeliness of service. In addition to its logistical infrastructure, Tilley retains the ability to blend dry and liquid products, provide full-service packaging and repackaging and offer an extensive array of on-site storage capabilities to support just-in-time deliveries to its customers.

“The Tilley family, including John and Sean Tilley and their team, have built a tremendously successful platform with an industry-wide reputation for customer service, supply chain solutions and quality products,” said Mario Toukan, Managing Director of SK Capital. “We look forward to partnering with the Tilley team to continue to serve its customer base and expand the platform’s reach and capabilities.”

“Tilley is taking this step to satisfy growing demands from its suppliers and customers who want to see Tilley expand its infrastructure and footprint to continue supporting their growth with a high level of service,” explained John Tilley. “After long and careful consideration, we have chosen to partner with SK Capital, which shares our vision and strong set of values while bringing significant resources and relationships to the table,” said John Tilley.

Jon Borell, a Managing Director of SK Capital added, “For many years, SK Capital has sought to invest into a strong distribution business, and we believe we have found a great opportunity to partner with Tilley. The Company is a best-in-class regional distributor, which has benefitted from decades of stewardship and leadership under several generations of Tilley family ownership. We feel privileged to play a part in this ongoing story and to work closely with Tilley’s employees, principals and customers to bring further opportunities for growth and success to fruition.”

Klehr Harrison Harvey Branzburg LLP acted as legal counsel to SK Capital and committed debt financing was provided by Madison Capital.

About SK Capital

SK Capital is a private investment firm with a disciplined focus on the specialty materials, chemicals and pharmaceuticals sectors. The firm seeks to build strong and growing businesses that create substantial long-term economic value. SK utilizes its industry, operating and investment experience to identify opportunities to transform businesses into higher performing organizations with improved strategic positioning, growth and profitability as well as lower operating risk. SK Capital’s portfolio of businesses generates revenues of approximately $11 billion annually, employs more than 15,000 people globally and operates 135 plants in 28 countries. The firm currently has approximately $4.86 billion of assets under management. For more information, please visit www.skcapitalpartners.com.

About Tilley Chemical Company, Inc.

Founded in 1952, Baltimore, Maryland‐based Tilley is a value-added chemical distributor that offers supply chain solutions for customers across specialty chemical and lubricant markets. The Company seeks to act as a direct extension of their suppliers’ selling networks to effectively partner and service broader customer networks. Tilley operates modern, efficient distribution facilities and a large fleet of transportation equipment to serve its customers’ chemical needs. The Company operates two North American facilities and offers a comprehensive portfolio of value-added services, including regulatory and technical support, custom formulation, lab QA/QC testing, liquid and dry blending, storage and packaging and repackaging.

Tilley has created a business environment based on open communication, product safety and superior service. Tilley is a member of the OmniChem Alliance and is a member of the National Association of Distributors. Learn more by visiting www.tilleycompany.com.