Jordan Company in $550m chemicals exit

The mid-market firm will sell Haas Group to Wesco Aircraft. 

The Jordan Company will sell Haas Group, a chemical management services and distribution company, to Wesco Aircraft Holdings for $550 million, according to a statement.

Haas provides chemical supply chain management services, including chemical product distribution and hazardous communications, to the commercial aerospace, airline, military and energy markets. The company manages more than 90,000 unique chemicals and products in 35 distribution centers around the world.

“We have long-term contracts with blue chip customers who value chemical management services because we lower their costs, reduce their chemical use and help them meet regulatory standards,” Haas chief executive officer Thad Fortin said in the statement.

The Jordan Company acquired Haas in 2007 using capital from its debut Resolute Fund, which collected $1.5 billion in 2002, according to Private Equity International’s Research and Analytics division. The sale is expected to close in the first quarter of 2014.

During the investment period, Jordan merged Haas with existing portfolio company Avchem Chemical Services and reduced costs by making technology and freighting improvements.

Jordan is in market with its Resolute Fund III, which launched in early 2013 with a $3 billion target. The fund has collected about $1.8 billion, according to a source familiar with the matter. The fund has received commitments from the Ohio Police & Fire Pension Fund, the New York State Teachers’ Retirement System and Danish pension Industriens Pension, according to PEI data.

Jordan declined to comment on fundraising.

Resolute Fund III will continue to invest using the same strategy as the firm’s prior two funds, backing companies with enterprise values of between $100 million and $2 billion. Jordan invests in the aerospace and defense, energy, consumer products and healthcare and financial services sectors. In 2013, Jordan made four investments, including one in the chemicals sector, acquiring Drew Marine Global Holdings Coöperatie, which manufactures chemicals for the international maritime and offshore markets, according to Jordan’s website.

The Jordan Company is led by five managing partners, including co-founder Jay Jordan, who previously worked at mid-market merchant bank Carl Marks & Co.

The firm operates out of its New York headquarters and offices in Chicago and Shanghai.