Partnership With Founders Sets Business on Course for Expansion
LOS ANGELES – January 11, 2022 – OpenGate Capital, a global private equity firm, announced today that it has acquired Chemsolv Inc. (“Chemsolv”), a leading regional distributor of commodity and specialty chemicals and value-added service provider. The business was acquired from the Austin family, who continue to retain an ownership stake and role in the company. Terms of the acquisition were not disclosed.
Chemsolv was founded in 1979 by Mr. Glenn Austin and has four mid-Atlantic distributions centers (“DCs”) strategically located in key chemical markets with access to major highway corridors in South Carolina, Tennessee, and two DCs in Virginia. The business features integrated technologies and systems to effectively manage high volume, complex operations. It operates as a hub-and-spoke distribution model with a fleet of 41 trucks and approximately 1.5 million galls of bulk storage capacity providing the business with significant operational flexibility. Chemsolv distributes a wide range of more than 1,000 chemical products sold to a variety of customers and end markets including solvents, plasticizers, coolants, lubricants, surfactants, diesel exhaust fluid, additives, and other products. Customer and end markets include construction, roofing, chemical intermediates, paints and coatings, automotive, and others. In addition to distribution, Chemsolv provides other value-added services including solvent recovery, blending, packaging, formulation, transportation, and transloading.
OpenGate Capital’s Founder and Chief Executive Officer Andrew Nikou stated, “Glenn and Jamie Austin have built a successful business with well-established supplier partnerships, and broad range of capabilities. We’re excited to work together and build on this success.”
“Today represents an important point in Chemsolv’s 40 plus-year history through our partnership with OpenGate. Our business is well poised for growth and expansion, and we’re looking forward to continuing to serve our customer base,” said Jamie Austin, Chemsolv President 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.
Chemsolv, Inc. is a growing organization that is poised for the future in the US chemical distribution industry. Chemsolv was founded in November 1979 by Mr. Glenn Austin. Chemsolv has been built by a solid service team of managers and staff dedicated to satisfying a highly diversified customer base. The headquarters and main distribution facility are located in Roanoke, Virginia. Chemsolv represents over 100 manufacturers of industrial chemicals, silicones, solvents, lubricants, metalworking fluids, and other specialty products, all of which are supported by a commitment to the continuous improvement in our operating practices, and The Responsible Distribution Process of the NACD. To learn more about Chemsolv, please http://www.chemsolv.com.
For more information, please contact:
OpenGate Media Contacts:
Alanna Chaffin Co-Head, Investor Relations & Communications
Telephone: +1 310-432-7000
OpenGate Business Development Contact:
Telephone: +1 (310) 432-7000
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