Deal Type
Sell-Side Advisory

Deal Team
Andy Stockett, Chris Rowe, Andrew Allred

Company Overview
AlChem and CalCHEM are leading regional manufacturers of specialty water treatment chemicals, supplying products that are essential to municipal and industrial water purification. With operating facilities in Ohio and Northern California, the companies have established strong customer relationships and a reputation for high-quality products in a niche but strategically important segment of the water treatment industry.

Situation
The ownership group was approached by its primary supplier, USALCO, an H.I.G. Capital portfolio company, regarding a potential acquisition. Given the strategic fit between the businesses, the owners believed a transaction made sense but had little experience navigating the sale process or determining whether the initial offer represented fair market value.

Although the owners’ preferred outcome was a sale to USALCO, they wanted an experienced advisor to verify the company’s value, negotiate favorable terms, and ensure they received the best possible outcome.

Challenge
Unlike a traditional broad auction process, FourBridges was initially engaged under a limited mandate focused on negotiating with a single strategic buyer. The firm was tasked with balancing the client’s desire to sell to its preferred acquirer while ensuring the buyer paid full market value.

Process
Upon engagement, FourBridges immediately gathered the financial and operational information necessary to support a credible valuation and worked closely with the buyer to understand exactly what was required to submit a fully actionable Letter of Intent.

The buyer’s initial indications of value increased materially after FourBridges became involved, confirming the importance of professional representation early in the process. However, the team believed additional value remained on the table.

To establish an objective market benchmark, FourBridges conducted a targeted market outreach and valuation diligence within the sector. These discussions confirmed that the initial proposal was at the low end of market valuations for comparable businesses.

With the client’s approval, FourBridges carefully introduced a highly qualified strategic alternative into the process. Rather than creating a broad auction, the firm leveraged a competitive process with a single additional buyer capable of executing the transaction.

FourBridges solicited a competing bid from the new entrant, which was substantially higher. Once USALCO learned that a competing offer was on the table, FourBridges asked for the company’s best and final offer, and USALCO ultimately countered with the winning bid. The competition produced a significantly higher indication of value and created meaningful leverage during final negotiations.

As negotiations progressed, FourBridges remained focused not only on purchase price but also on transaction structure, diligence expectations, and ensuring the buyer honored its commitments throughout the process.

Results
FourBridges transformed what began as a single-buyer negotiation into a disciplined strategic process that maximized shareholder value while preserving transaction certainty.

By verifying market value, introducing targeted competitive tension, and maintaining leverage throughout negotiations, FourBridges helped the shareholders achieve a purchase price that nearly doubled the seller’s initial expectations. Just as important, the team successfully guided the transaction through an accelerated timeline and extensive diligence process.

The results were validated after closing, when an executive from a competing bidder mentioned that FourBridges had secured “the absolute best outcome” that could have been achieved for the business—independent confirmation that the firm’s process successfully maximized value for the shareholders.

Read the deal announcement here.