H.I.G. Capital has made an investment in USALCO, a provider of specialty chemicals. The investment in USALCO is H.I.G.’s tenth current platform in the chemical sector.
USALCO (United States Aluminate Company) is a manufacturer of aluminum-based chemicals – including aluminum sulfate and polyaluminum chloride – that are used in water and wastewater treatment processes; and a manufacturer of alumina powder catalysts used by refineries to make fuels from lower-quality oils and heavier distillates.
USALCO operates nine manufacturing facilities in Ohio (4), Maryland (2), Indiana, Louisiana, and Arkansas. The company was founded in 1980 by Lawrence Askew and is headquartered in Baltimore.
H.I.G. is partnering with President David Askew and CEO Peter Askew (sons of the founder) as well as other members of the company’s management team on this transaction.
“We are very excited to partner with Peter and David and the USALCO management team, who have a proven track record of building a best-in-class business and providing the highest levels of quality for their customers,” said Keval Patel, a managing director at H.I.G. ”The company’s steady and growing revenue profile, highly efficient operations and numerous growth opportunities make this an attractive investment.”
H.I.G. specializes in providing debt and equity capital to small and medium-sized companies and invests in management buyouts, recapitalizations, and corporate carve-outs of both profitable as well as underperforming manufacturing and service businesses. Founded in 1993, H.I.G. has invested in more than 300 companies and has a current portfolio of 100 companies with combined sales in excess of $30 billion.
“We are very excited about partnering with H.I.G. to support USALCO’s growth objectives,” said Peter Askew. “We have numerous opportunities to expand both organically and inorganically, and H.I.G.’s experience and resources will help us continue and accelerate our successful growth trajectory.”
H.I.G. has $37 billion of equity capital under management and is headquartered in Miami with additional offices in New York, Boston, Chicago, Dallas, Los Angeles, San Francisco, Atlanta, and Stamford.
Private Equity Professional | June 3, 2020
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