Integrity Partners Group (IPG)

Chemical distributor and blender of solvents, surfactants, and others, with a broad range of over 1,000 products.

Sales are diversified across end markets, with exposure to personal care, CASE, industrial, food and beverage, home and garden, and transportation end markets
Strong geographic presence in Southeast and MidAtlantic with six facilities across Virginia, Tennessee, South Carolina, and Missouri
Acquired Chemsolv in December 2021, a Roanoke-based broadline value-added distributor across a number of end markets
Acquired Chemisphere in December 2021, a St. Louis-based distributor of ethanol and acetates for the food and beverage market

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Acquired:

December 23, 2021

Transaction Type:

Private Seller

Acquired from:

Private seller

Industry:

Chemicals

Headquarters:

Roanoke, Virginia

Source:

Competitive Auction Process

Status:

Owned

Transaction Highlights

OpenGate developed a sector thesis for a buy-and-build in the chemical distribution industry and partnered with the family ownership and executive team.

Investment Merits:

Industry attractiveness: Increasing penetration by distributor channel as customers look to outsource sales in order to focus on manufacturing, as well as distributors being leveraged as value-added service providers
Buy-and-build opportunity: Highly fragmented, localized industry, creating opportunity for commercial and operational synergies, geographic density, and scale through add-ons

Value Creation

Management professionalization of long-time family run companies by improving executive talent and financial operations discipline
Integration synergies including cross-selling through leveraging complementary product portfolios and principal relationships across geographies
Geographic expansion by investing in additional commercial talent and securing new warehouses in adjacent geographic areas to expand scale