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Stellex Capital acquires Grammer Industries

Stellex Capital Management has acquired Columbus, Indiana-based Grammer Industries, a provider of bulk hazardous transportation services. No financial terms were disclosed for the transaction that was done in partnership with the Whittington family and management.

PRESS RELEASE

New York, October 2, 2018 — Stellex Capital Management (“Stellex”), a middle market private equity firm with offices in New York and London, announced today that it has completed its acquisition of Grammer Industries, Inc. (“Grammer” or the “Company”) in partnership with the Whittington family and management. Now entering its fifth decade, Grammer is recognized as the premier provider of safe, dependable bulk hazardous transportation services in the United States. Terms of the transaction were not disclosed.

Grammer’s management team, under the leadership of Chief Executive Officer Bart Middleton and Vice President John Whittington, invested in the transaction and will continue to lead the business on its current path of expansion and growth.

Based in Columbus, Indiana, Grammer is the nation’s leading transportation and logistics company for specialty and hazardous chemicals. The Company provides a broad suite of integrated, specialized services including transportation, transloading, terminaling and handling of chemicals and hazardous materials where safety, service, training, reliability, geographic coverage and efficiency are of paramount importance.

The Company has 17 facilities strategically located near major chemical production hubs across the United States.

Michael Stewart, Managing Partner of Stellex Capital, said, “This is an exciting inflection point in the evolution of the North American chemicals industry supply chain, and we look forward to making future investments in the Grammer platform. Grammer is strongly positioned at the intersection of compelling trends in chemical production, logistics outsourcing and market consolidation.”

Grammer’s highly trained, seasoned team of more than 250 drivers and modern, meticulously maintained fleet of more than 350 specialty tankers transport anhydrous ammonia, liquefied petroleum gases, carbon dioxide, nitric acid, cryogenic liquids and other bulk hazardous materials and liquids on behalf of more than 120 customers to more than 1,000 unique delivery points spanning a diverse range of end markets.

“This is a great development for Grammer’s customers, suppliers, employees and owner-operators. The Company has a demonstrated track record of growth, and we will continue to expand and deepen Grammer’s position as the industry’s logistics partner of choice. We are very excited about our partnership with Stellex and our shared vision for the next phase of growth,” said Bart Middleton.

Mr. Whittington, added, “With the support of Stellex, Grammer will accelerate the further expansion of our geographic footprint and enhance our ability to serve our customers through both organic growth initiatives and acquisitions.”

Debt financing was arranged and provided by NewStar Financial (the Alternative Credit Group of First Eagle), Bain Capital Credit and CIT Financial. Kirkland & Ellis LLP represented Stellex in the transaction. Deloitte Corporate Finance; Milbank, Tweed, Hadley & McCloy LLP and K&L Gates LLP advised Stellex affiliates. Piper Jaffray & Co. and Morgan, Lewis & Bockius LLP advised the Company.

About Grammer Transportation
Based in Columbus, Indiana, Grammer Industries was founded by Charles “Shorty” Whittington as a niche carrier servicing the agriculture industry by hauling anhydrous ammonia. The Company has grown steadily over time, adding new products and expanding its geographical base. Today, Grammer is the premier provider of bulk hazardous transportation services in the United States. The Company stands on its foundation of safety and unsurpassed customer service as the key components of its longevity and success.

About Stellex Capital Management
Stellex is a private equity manager that invests in and oversees U.S. and European corporate assets. Stellex’s focus is on middle-market companies going through business or industry transitions, as well as special situation opportunities. Stellex seeks to identify and deploy capital in opportunities that have the potential to provide stability, improvement and growth.