Capstone Partners advised Shannon Chemical Corporation—a formulator of chemical treatment solutions for municipal drinking water systems—on its sale to Usalco. The transaction closed in April 2026, and terms of the deal were not disclosed.
For over 40 years, Shannon Chemical Corporation has been assisting the largest utilities and rural water systems to achieve successful compliance. The company produces corrosion control chemicals for drinking water systems, serving municipal and investor‑owned utilities nationwide with phosphate‑based solutions focused on reducing lead and copper exposure in water. For more information about Shannon Chemical Corporation, click here.
As a multi-generational, family-owned business, it was essential to preserve Shannon’s legacy and culture through a transition of the business. Capstone’s sector expertise and relationships with businesses in the water treatment space helped ensure the best outcome for our business and employees.
The combination of Shannon’s specialized products with Usalco’s national manufacturing and distribution network will provide utilities with reliable access to water treatment solutions, regardless of location. Customers will also gain access to a combined network of chemical and corrosion experts, joint R&D, and digital solutions such as Corrosion Sentry™ within the industry-leading Decision Blue® software suite. Together, these capabilities will help utilities address the more stringent requirements of the Enhanced Lead and Copper Rule through improved corrosion control program design, monitoring, and documentation.
James Adduci, Managing Director in Capstone Partners’ Infrastructure Group, commented, “We are proud to have represented Dan Flynn and the rest of the Flynn family in their sale of Shannon Chemical. The Shannon team built a differentiated business, that together with Usalco establishes a dominant phosphate-based water treatment chemical platform ready for its next chapter of growth.”
Usalco helps customers deliver cleaner water, smarter systems, and more sustainable water treatment outcomes. Headquartered in Baltimore, Maryland, Usalco operates 42 manufacturing and logistics facilities with industry‑leading technical resources serving the clean-water needs of over one hundred and thirty million U.S. residents and businesses. For more information about Usalco, click here.
The investment banking professionals on Capstone Partners’ dedicated Water/Wastewater Team work with leading middle market companies operating across the sector to advise with their strategic decision-making in order to maximize financial outcomes at every stage of the business lifecycle. Our firm has developed a full suite of corporate finance solutions, including M&A advisory, debt advisory, financial advisory, and equity capital financing to help privately owned businesses and private equity firms address any need, ranging from growth and financial or operational advisement to an ultimate exit transaction. To learn more about this transaction, or about the benefits of starting a relationship with our Industrials Banking Team, contact us here.
