Chemsolv operates on a hub-and-spoke distribution model, with a fleet of 41 trucks and bulk storage capacity of roughly 1.5 million gallons. The distributor supplies a wide variety of customers in industries such as construction, roofing, chemical intermediates, paints and coatings, and automotive, among others, as well as providing services like blending, formulation and packaging.

Jamie Austin, Chemsolv president, said the company is well poised for growth and expansion under the partnership with OpenGate.

The private equity group’s second acquisition, signed Jan. 18, was Chemisphere, a specialty solvent blender and chemical distributor based at St. Louis, Missouri, USA. Its capabilities and portfolio include bulk product and raw material distribution, custom blending and toll manufacturing, serving customers across the personal care, agriculture, food and beverage and industrial sectors.

OpenGate said both businesses are highly complementary, and the combination forms a strong platform that is poised for organic growth and future add-on acquisitions.

“The combination of Chemisphere with Chemsolv creates a diversified platform spanning the Midwest to the Mid-Atlantic region of the US, 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 said.

The California-based investor added that the US chemical distribution industry is poised for continued growth, and “further geographic growth and expansion of market coverage is planned through opening greenfield locations as well as acquisitions.”

Author: Elaine Burridge, Freelance Journalist