Magnablend Acquired by Univar
Waxahachie, Texas – December 14, 2012– Cotton Creek Capital is pleased to announce the previously reported acquisition of its portfolio company, Magnablend, Inc. by Univar Inc., a global leader in the distribution of chemistry and related services. The transaction represents the culmination of a partnership between Cotton Creek Capital and Magnablend Chief Executive Officer Scott Pendery in the execution of a growth and expansion strategy in the specialty chemical industry. Magnablend’s acquisition by Univar will further augment this strategy by providing increased distribution capabilities and a global presence.
Cotton Creek Capital was actively involved in operational execution related to the transformation of Magnablend from a family-held business into a leader in the oilfield and agricultural chemicals market. Over the course of its ownership, Cotton Creek Capital assisted in the company’s shift from a contract blender to a provider of proprietary formulations, including an investment in research and development, personnel, and capacity, including three new facilities and substantially increased capacity at existing facilities. As a result, revenue tripled and EBITDA quadrupled over the course of Cotton Creek Capital’s investment.
“We are thrilled that the acquisition has closed,” said Univar President and Chief Executive Officer Erik Fyrwald. “Our ability to offer a comprehensive product portfolio and expanded geographic footprint will provide major benefits to our customers and suppliers in the oil and gas and agriculture industries.”
Following the acquisition, Magnablend will function as a wholly-owned subsidiary of Univar and will continue to be led by its existing management team, including Scott Pendery.
“Magnablend’s market activities, supplier relationships, facilities, and locations are a perfect fit to the Univar network,” said Pendery. “Both of our companies share the same dedication to building and maintaining long-standing relationships with customers and suppliers. We also share the same focus on quality, excellence, expertise, and safety, and we are convinced that our employees and business partners will benefit greatly from the new combined organization.”
“Magnablend’s remarkable performance is the result of a substantial effort at every level of the company, and is a testament to the dedication of Scott Pendery and his team,” said Cotton Creek Capital Managing Director Antonio DiGesualdo. “During the tenure of our partnership we have navigated the challenges brought on by incredible growth, broadened our reach and service capabilities, weathered the adversity of a catastrophic fire and subsequently emerged as a stronger organization, building upon Magnablend’s well-deserved reputation for exceptional quality, consistency, and service.”
About Magnablend, Inc.
Founded in 1979, Magnablend specializes in custom chemical manufacturing, blending, and packaging for a variety of industries, including: energy/oil and gas services, agriculture, water treatment, construction, and industrial cleaning. The company blends guar gum slurries, fluid loss additives, buffers, breakers, friction reducers, spacers, specialty cement additives, root stimulators, micro nutrients, specialty fertilizers, nitrogen stabilizers, animal nutrients, coil cleaners, degreasers, and automotive after-market products. For more information, visit: www.magnablend.com.
About Univar, Inc.
Univar is one of the world’s leading distributors of industrial and specialty chemicals. Univar represents over 3,500 chemical producers and provides its customer base, made up of 115,000 customers, with a full portfolio of products. Univar operates a global network of more than 260 facilities in North America, Europe, the Asia-Pacific region, and Latin America, with additional sales offices located in Eastern Europe, the Middle East, and Africa. In 2011, Univar reported sales of $9.7 billion. For more information, visit: www.univar.com.
About Cotton Creek Capital
Cotton Creek Capital is a Texas-based private equity firm focused on investing in and growing established lower middle market companies in specialty chemicals, manufacturing, value-added distribution, industrial services, energy, business services, healthcare services, and consumer staples. The firm primarily invests in companies in the Southwest with enterprise values between $20 million and $200 million through control transactions including buyouts, recapitalizations, buy-and-builds, and corporate divestitures. Cotton Creek Capital’s relationship-based approach to investing and value creation is centered on the active involvement and operational expertise of the firm’s partners and principals in support of its management teams. Cotton Creek Capital is affiliated with Brownlie & Braden, LLC, a provider of financial advisory services to high net worth families for over 20 years. For further information, visit Cotton Creek's website at www.cottoncreekcapital.com.