SK Capital Acquires D.B. Western
US private equity firm SK Capital Partners has acquired D.B. Western, a Texas-based producer of formaldehyde and derivatives, for an undisclosed sum.
D.B. Western said its plant in LaPorte, Texas has the largest capacity in the world of formaldehyde, triazines and urea-formaldehyde concentrate. The facility is capable of producing 635,000 t/y of formaldehyde and serves the oilfield, refinery and petrochemicals markets. The company has been renamed Foremark Performance Chemicals.
“Foremark represents a compelling opportunity to own an industry leader with proprietary, best-in-class production capabilities that provide critical building block chemicals to a growing blue-chip customer base with diversified end-market exposure,” commented Jack Norris, one of SK Capital’s managing directors.
Randy Owens, who previously served as CEO of Calabrian, one of SK Capital’s prior portfolio companies, has been appointed to lead Foremark. SK Capital sold Calabrian in July 2016 to Ineos Enterprises. Owens said the investment group has identified several opportunities to substantially grow Foremark, including developing new products and applications as well as acquisitions.
Also this month, SK Capital announced it has partnered with management to recapitalize Tri-Tex, a Canadian specialty chemicals manufacturer and distributor focused on the adhesives, coatings and sealants, surfactants and textile markets. The New York equity company has acquired a majority holding with Tri-Tex founders retaining a significant stake.
In February this year, SK Capital bought Niacet, a producer of specialty ingredients for food, feed and pharmaceutical applications headquartered in Niagara Falls, New York.