Capstone Partners Advised Enviro Tech Chemical Services, Inc. on Its Sale to Arxada AG
Capstone Partners advised Enviro Tech Chemical Services, Inc. (Enviro Tech) on its sale to Arxada AG, a portfolio company of Bain Capital and Cinven.
Enviro Tech Chemical Services, Inc., based in Modesto, CA, is a category-leading manufacturer and supplier of high-efficacy, environmentally friendly antimicrobial and biocidal products. Enviro Tech partners with distributors to provide a complete line of EPA and FDA-approved products for a variety of industries including industrial water treatment, meat & poultry disinfection, fruit & vegetable processing, agriculture water, animal health, produced & frac water treatment, municipal wastewater treatment, and more. Enviro Tech holds a broad portfolio of intellectual property including 41 EPA registrations, 15 FDA Food Contact Notifications, and 14 U.S. patents.
The acquisition will create a new, complementary business line in Arxada’s Microbial Control Solutions (MCS) business. It will have a focus on peracetic acid (PAA), bromines, and specialty products, notably for the food and beverage, agriculture, and wastewater treatment segments. The acquisition will also enhance Arxada’s manufacturing footprint through the addition of three large-scale manufacturing facilities in strategic locations across the United States — Modesto, California; Helena, Arkansas; and Levelland, Texas.
The Capstone team went above and beyond to advise us throughout the transaction process in a very professional and organized manner. We could not have obtained the premium transaction value without them on our side.
Mike Harvey, founder and CEO of Enviro Tech, said, “Enviro Tech has had innovation at the heart of its operations throughout its 30-year history, with a strong track-record of outstanding performance and growth. Our entrepreneurial approach and fast-paced innovation strategy, coupled with Arxada’s operational expertise and scale, will enable us to develop new, sustainable solutions for our customers. Together, we can continue to lead the way in pioneering innovative solutions in the specialty chemicals market.”
Samrat Karnik, Managing Director and Head of the Water Technologies & Solutions practice commented, “Advising Enviro Tech on this marque transaction in the industry was a true privilege for Capstone. Our advisory here is consistent with our ability to bring relevant multi-industry capabilities to optimally position companies in fast growing industries and drive superior results for companies through unbiased advice and dedication to client service.”
Doug Usifer, Managing Director in Capstone’s Chemicals practice, also commented, “Enviro Tech is a market leader in antimicrobial and biocidal chemistry and applications, and the company leverages deep intellectual property and know-how to support its customers in diverse end markets. Enviro Tech has delivered an industry-leading track record of growth and is well-aligned with global megatrends. We were thrilled and honored to represent Enviro Tech and its entire management team on the next-chapter growth with Arxada.”
Arxada, formerly part of Lonza Group Ltd. (SWX: LONN), is a global leader in specialty chemicals. The acquisition of Enviro Tech represents Arxada’s second strategic deal in its first six months as an independent company.
Commenting on the acquisition, Marc Doyle, Chief Executive Officer of Arxada, said, “The acquisition of Enviro Tech is another important and strategic deal for Arxada as we extend our position within the microbial control industry. Enviro Tech brings direct access to the $6 billion USD food and beverage hygiene market and adds capabilities in sustainable and highly complementary chemistries. Enviro Tech’s strong culture of innovation is a great fit with Arxada’s strategic plans to expand our MCS (microbial control solutions) capabilities and to develop unique solutions to meet our customers’ needs and drive our future growth.”
Bain Capital is an American private investment firm based in Boston, Massachusetts. It specializes in private equity, venture capital, credit, public equity, impact investing, life sciences, and real estate.
Founded in 1977, Cinven is a global private equity firm with offices in nine international locations. Investing across Europe, the United States, and emerging markets, Cinven concentrates largely in the Industrials, Technology, Media and Telecommunications, Financial Services, Business Services, Healthcare, and Consumer industries.
The transaction closed on December 22nd, 2021