H.I.G. Capital LLC
08/05/2024 | Press release | Distributed by Public on 08/05/2024 07:49
H.I.G. Capital Announces Sale of USALCO
H.I.G. Capital Announces Sale of USALCO
MIAMI - August 5, 2024 - H.I.G. Capital ("H.I.G."), a leading global alternative investment firm with $64 billion of capital under management, is pleased to announce the sale of its portfolio company USALCO ("USALCO" or the "Company") to funds managed by TJC (formerly known as The Jordan Company). H.I.G. will remain a minority investor in the Company.
USALCO is a leading provider of water treatment solutions for municipal and commercial customers in North America, offering bespoke formulated chemistries with best-in-class product efficacy. The Company's unique digital dosing and filtration cleaning services address a diverse range of water treatment requirements. Headquartered in Baltimore, MD, USALCO operates 33 manufacturing and distribution facilities throughout North America. The Company has a leading market position in each of the markets it serves, has the lowest cost position in the industry, and provides its customers with high levels of quality and service.
USALCO was acquired by H.I.G in June 2020 in partnership with the Company's family owners. During its ownership, H.I.G. supported the Company in building a best-in-class management organization, executing transformative and highly accretive M&A, investing significant capital to expand USALCO's specialty production capabilities and geographic reach, implementing extensive operational initiatives, and mapping out the strategic path for USALCO's transformation into a differentiated, at-scale, water treatment solutions provider.
Kenneth Gayer, Chief Executive Officer at USALCO, commented: "H.I.G. has been an exceptional partner to USALCO and instrumental in helping us transform USALCO into the market leader we are today. H.I.G. supported significant investments across USALCO, which strengthened our ability to provide differentiated solutions and service levels to our customers. This management team is just getting started and couldn't be more enthusiastic about our new partnership with TJC as we execute on our next phase of growth."
"Ken and the USALCO management team have done an outstanding job transforming USALCO from a regional water treatment player to a differentiated water treatment solutions provider with compelling growth avenues that will take the business to the next level," said Keval Patel, Managing Director at H.I.G. Capital. "USALCO is an outstanding company led by an exceptional leadership team and we look forward to participating in the Company's continued success."
BofA Securities, Inc. and Citigroup Global Markets Inc. were financial advisors to USALCO, and King & Spalding LLP represented H.I.G. Capital and USALCO as legal counsel in connection with the transaction.
About USALCO
Headquartered in Baltimore, MD, USALCO is a leading provider of water treatment solutions for municipal and commercial customers in North America, offering bespoke formulated chemistries with leading product efficacy as well as unique digital dosing and filtration cleaning services to address a diverse range of water treatment requirements. USALCO operates 33 manufacturing and distribution facilities throughout North America. The Company has a leading market position in each of the markets it serves, has the lowest cost position in the industry, and provides its customers with high levels of quality and service. For more information, please visit usalco.com.
About H.I.G. Capital
H.I.G. Capital is a leading global alternative investment firm with $64 billion of capital under management.* Based in Miami, and with offices in Atlanta, Boston, Chicago, Los Angeles, New York, and San Francisco in the United States, as well as international affiliate offices in Hamburg, London, Luxembourg, Madrid, Milan, Paris, Bogotá, Rio de Janeiro, São Paulo, and Dubai, H.I.G. specializes in providing both debt and equity capital to middle market companies, utilizing a flexible and operationally focused/value-added approach:
- H.I.G.'s equity funds invest in management buyouts, recapitalizations, and corporate carve-outs of both profitable as well as underperforming manufacturing and service businesses.
- H.I.G.'s debt funds invest in senior, unitranche and junior debt financing to companies across the size spectrum, both on a primary (direct origination) basis, as well as in the secondary markets. H.I.G. also manages a publicly traded BDC, WhiteHorse Finance.
- H.I.G.'s real estate funds invest in value-added properties, which can benefit from improved asset management practices.
- H.I.G. Infrastructure focuses on making value-add and core plus investments in the infrastructure sector.
Since its founding in 1993, H.I.G. has invested in and managed more than 400 companies worldwide. The Firm's current portfolio includes more than 100 companies with combined sales in excess of $53 billion. For more information, please refer to the H.I.G. website at hig.com.