Capstone Partners Advises D.B. Western - Texas on its Acquisition by SK Capital Partners

6/8/17

Capstone Partners LLC, a leading investment banking firm, announced that it has successfully advised D.B. Western, Inc. - Texas (DBWT) on its acquisition by SK Capital Partners (SK Capital). Terms of the deal were not disclosed.

DBWT is a leading producer of formaldehyde, urea-formaldehyde concentrates and MEA Triazines. The Company utilizes the most advanced technology in the industry and its LaPorte, Texas facility is the largest merchant market plant in North America. DBWT will be renamed Foremark Performance Chemicals and will be led by Randy Owens, former CEO of one of SK Capital’s portfolio companies.

Steve Beetham, representing the selling shareholders, commented, “SK Capital is the perfect partner to advance DBWT’s leadership among merchant market producers of formaldehyde and its derivative products. We were extremely pleased with Capstone Partners who represented us in this complex sale process and optimized all aspects of the transaction for our family.”

SK Capital is a New York-based private equity firm that invests in the specialty materials, chemicals and pharmaceutical sectors. By focusing on niche markets SK Capital leverages its industry expertise to become a value-added partner. The firm currently has more than $1.9 billion under asset management and its portfolio companies generate an estimated $5.0 billion in revenue each year.

“Foremark represents a compelling opportunity to own an industry leader with proprietary, best-in-class production capabilities that provides critical building block chemicals to a growing blue-chip customer base with diversified end market exposure,” SK Capital Managing Director Jack Norris, commented in a press release. “The investment is consistent with SK Capital’s strategy of investing in niche market leaders in segments where the firm has significant industry, operating and ownership experience.” According to Norris, Foremark will be transitioned from a product-oriented company to a leader of intermediates and derivatives for oilfield refineries and petrochemical customers.

David Bench, Managing Director of Capstone Partners added, “Interest among buyers in the acquisition of DBWT was very robust. The strategic and cultural fit with SK Capital is very compelling and we are delighted to have played a role in helping DBWT and its shareholders partner with a firm that will lead the company in its next chapter of success.”

Capstone Partners LLC is an award-winning investment banking firm dedicated to serving the corporate finance needs of middle market business owners, investors and creditors. Over the past 15 years, Capstone has earned a reputation as one of the most innovative firms in the industry, offering corporate sale & divestiture, merger & acquisition, private placement, corporate restructuring, valuation and financial advisory services. The firm maintains seven industry practices, including: Business Services, Consumer Products, Education & Training, Government Services, Health & Medical, Manufacturing & Industrial, and Technology & Telecom. Headquartered in Boston, Capstone has offices in Chicago, London, Los Angeles, Philadelphia, San Diego, Silicon Valley and Tampa with an international presence that spans 450+ professionals in 70 offices across 31 countries. For more information, please visit www.capstonellc.com.

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