AlChem/CalCHEM Acquired by H.I.G Portfolio Company USALCO
FourBridges negotiated and structured the deal on behalf of Alchem and CalCHEM
CHATTANOOGA, Tenn. (January 6, 2021) — FourBridges Capital today announced the acquisitions of Ohio-based Al Chem Specialties, LLC (“AlChem”) and California-based CalChem, LLC (“CalCHEM”) by USALCO LLC. FourBridges advised AlChem/CalCHEM CEO Scott Williams and other shareholders on the transaction.
AlChem/CalCHEM manufacture a variety of aluminum-based coagulants used in water and wastewater treatment processes by municipal and industrial customers. Headquartered in Baltimore, USALCO is also a provider of high-quality aluminum chemicals used in water and wastewater treatment, as well as refinery catalysts and other industrial end market applications.
In June 2020, H.I.G. Capital, a $46 billion private equity and alternative investment firm, announced a strategic investment in USALCO to further accelerate the company’s growth objectives.
“We are pleased to partner with Scott and the AlChem / CalCHEM team,” said Keval Patel, Managing Director at H.I.G. “The transaction fits squarely into our strategy of further expanding our geographic reach within the U.S. and acquiring best-in-class companies that produce significant value creation opportunities.”
AlChem/CalCHEM were founded in 2004 by Willams and other investors. The two companies have earned a reputation for providing innovative products and solutions to their customers, along with an intense focus on service. Post-transaction, Williams will join the leadership team at USALCO.
“We see tremendous commercial opportunity in the combined platform given our complementary product set and go-to-market strategy,” Williams said. “We look forward to partnering with USALCO to continue serving our customers and expanding our offering across the United States.”
“It was a pleasure working with Scott and the team at USALCO and H.I.G to get this over the goal line by December 31,” said FourBridges Managing Director Chris Rowe. “Our firm focuses heavily on advising founder-owned companies, and it’s fulfilling to see a combination like this come together.”
The FourBridges team of Chris Rowe, Andy Stockett, and Andrew Allred acted as exclusive M&A advisors to Alchem/Calchem. Billy Ching and Katelyn Fredericks of Nelson Mullins were lead legal counsel. Rahul Patel and John Anderson of King and Spalding advised USALCO/H.I.G.
FourBridges represents business owners who are thinking about selling their company, making an acquisition, or refinancing. The partners run a proven process to identify quality buyers, achieve the best value, and close a deal fast.
USALCO is a leading provider of high-quality aluminum chemicals used in water and wastewater treatment, refinery catalysts and other industrial end market applications in the United States. Headquartered in Baltimore, MD, USALCO operates 11 manufacturing facilities throughout the United States. For more information, visit https://www.usalco.com/.
About H.I.G. Capital
H.I.G. is a leading global private equity and alternative assets investment firm with $46 billion of equity capital under management. Since its founding in 1993, H.I.G. has invested in and managed more than 300 companies worldwide. The firm’s current portfolio includes more than 100 companies with combined sales in excess of $30 billion.