From the Wires
Resilience Capital Partners Completes Sale of ChemDesign Products to Lubar & Co.
By: PR Newswire
Nov. 27, 2012 12:49 PM
CLEVELAND, Nov. 27, 2012 /PRNewswire/ -- Resilience Capital Partners ("Resilience") is pleased to announce that ChemDesign Products, Inc. ("ChemDesign" or the "Company"), a portfolio company of The Resilience Fund II, L.P., has been acquired by Lubar & Co. ("Lubar"), a Milwaukee-based private investment firm. ChemDesign is one of the leading providers of custom toll manufacturing services to the global chemical industry. The company has developed a strong reputation for partnering with its blue-chip customers, utilizing its technical personnel, flexible manufacturing facilities and process optimization capabilities to produce highly complex chemicals.
The sale of ChemDesign generated a great result for Resilience, its investors, and the management team of the Company with a 3.8x net return on invested capital and a 25.9% net internal rate of return. "Our investment in ChemDesign is a great case study in corporate renewal. Through hard work, vision, and an operations oriented approach real value was created for the benefit of all the Company's various stakeholders," said Bassem Mansour, Co-CEO of Resilience. Resilience acquired ChemDesign in October 2006 in a chapter 11 363 Sale. The original investment thesis was focused on the Company's unique and flexible processing capabilities selling into attractive end markets.
"I am proud of our many accomplishments," said David Mielke, ChemDesign's CEO. "Resilience, as a partner, has been critical to our success by providing the capital structure at the onset and supporting the management team through a dynamic transition in an unpredictable economic climate. I have found the working relationship and support between the management team and Resilience unique and refreshing. They balance high standards of performance with a true understanding of the business and its capabilities." Early on Resilience recognized that capital investment trends in the specialty chemical industry presented an opportunity for a domestic contract manufacturer that focused on flexibilty. "While the economy certainly created some unpredicted challenges, it is a credit to the strong management team led by David that we were able to maintain focus on our investment thesis that an independently owned chemical manufacturer with investment in the right asset mix would be an attractive investment," said Ki Mixon, a Partner of Resilience.
Jones Day served as legal counsel and Dresner Partners acted as exclusive financial advisor to ChemDesign, Resilience and its affiliates.
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