OpenGate Capital Acquires Specialty Solvent and Chemical Distribution Business Chemisphere Corp.
OpenGate Capital, a global private equity firm, announced today that it has acquired Chemisphere Corp. ("Chemisphere"), a specialty solvent blender and chemical distributor. Chemisphere was acquired from its founder, Mr. Bob Schwent, and is a highly complementary business to Chemsolv, Inc., acquired by OpenGate Capital earlier this month. Combined, the two businesses form a strong platform, poised for organic growth and future add-on acquisitions. Terms of the acquisition were not disclosed.
Located in St. Louis, Missouri, Chemisphere was founded in 1974 and services customers throughout the United States. The business has more than 1.2 million gallons of storage capacity, 58,000 gallons in blending capacity, and 64,000 square feet of warehouse and manufacturing space. Chemisphere's broad capabilities and product offerings include bulk product and raw material distribution, custom blending, and toll manufacturing. The company provides more than 1,000 chemical products and blends, and serves customers across a variety of end markets including personal care, agriculture, food and beverage, and industrial markets.
The combination of Chemisphere with Chemsolv creates a diversified platform spanning the Midwest to the Mid-Atlantic region of the U.S., with a balanced product offering of blended and non-blended chemicals, and a diversified customer base covering a variety of end-markets including construction, transportation, printing, personal care, automotive, industrial, food and beverage, lawn and garden, and other sectors.
OpenGate Capital's investment thesis in the chemical distribution space is based on a view that the U.S. chemical distribution market is poised for continued growth. The emerging platform will build upon the long-standing customer and supplier relationships of both Chemisphere and Chemsolv. Further geographic growth and expansion of market coverage is planned through opening greenfield locations, as well as acquisitions.
OpenGate Capital's Founder and Chief Executive Officer Andrew Nikou stated, "The acquisition of Chemisphere is an exciting second step in the building of a chemical distribution platform, and is a hallmark of our belief in seeking out ways to grow our businesses organically and through M&A."
"I am incredibly proud of the evolution of the Chemisphere business and today represents an important milestone toward our next era of growth. In partnership with Jamie Austin and his team at Chemsolv, I believe we are in a greater position to serve our collective customers," said Matt Schwent, President of Chemisphere, who will continue to serve in his role.
About OpenGate Capital
OpenGate Capital is a global private equity firm specializing in the acquisition and operation of businesses to create new value through operational improvements, innovation, and growth. Established in 2005, OpenGate Capital is headquartered in Los Angeles, California with a European office in Paris, France. OpenGate's professionals possess the critical skills needed to acquire, transition, operate, build, and scale successful businesses. To date, OpenGate Capital, through its legacy and fund investments, has executed more than 30 acquisitions including corporate carve-outs, management buyouts, special situations, and transactions with private sellers across North America and Europe. To learn more about OpenGate, please visit www.opengatecapital.com.
About Chemisphere
Chemisphere is a distributor and blender of chemical products headquartered in St. Louis, MO. Chemisphere was founded in 1974 by Bob Schwent and others. Chemisphere specializes in the manufacturing and distribution of personal care products, industrial products, and denatured ethanol. The company offers a wide range of chemical manufacturing and distribution services to provide their partners with a fully-integrated solution.
To learn more about Chemisphere, please http://www.chemispherecorp.com.
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