By: ICN Bureau
Last updated : January 18, 2022 6:46 pm
Chemical distribution platform expands following acquisition of Chemsolv
Private Equity firm OpenGate Capital has acquired Chemisphere Corp. (Chemisphere), a specialty solvent blender and chemical distributor. Chemisphere was acquired from its founder, 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.
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.