Golden Gate Capital will acquire Angus Chemical Company from The Dow Chemical Company for $1.215 billion. The investment will come from Golden Gate’s Capital Opportunity Fund, a $3.5 billion buyout vehicle that closed in 2011.
Just three days ago Golden Gate was reported to be in the lead for the deal – beating out rival bids from Onex Corporation and Metalmark Capital Holdings.
Dow Chemical is the largest chemical maker in the US. Angus is the world’s only company to manufacture and distribute nitroalkanes and their derivatives, which can improve the performance of commercial and consumer goods like paints and coatings, or pharmaceuticals. Dow recently announced plans to target its diverse business offering around electronics, packaging and agriculture. As part of that plan, the company sold Angus and will also sell AgroFresh.
Angus is based in Buffalo Grove, Illinois with additional production facilities throughout the US and Germany.
The transaction is expected to close in the first quarter of 2015. Members of Angus’ management team will transition with the business following the close.
Industrial companies represent a significant focus area for Golden Gate. The firm recently exited its investment in US Silica, a maker of fracking sands yielding a 9x return on the initial $126.2 million investment.