Private equity firm Ardian has acquired a 50% ownership stake in ANGUS Chemical Company from Golden Gate Capital at a total enterprise value of approximately USD2.25 billion. Golden Gate Capital, which initially acquired ANGUS in February 2015 from The Dow Chemical Company, will retain a 50% stake in ANGUS. Additional terms of the transaction were not disclosed.

In 2018, Ardian sold its stake in Italmatch Chemicals, a global specialty chemical company based in Genova, Italy, and engaged in the following markets: Lubricant, Water & Oil, Detergents, Plastics Additives, Markets and Technology leadership in Phosphorus Derivatives (both Organic and Inorganic), Polymers, Esters and Chlorides.

ANGUS, based in Chicago, Illinois, U.S.A., is the world’s only company dedicated to the manufacture and distribution of nitroalkanes and their derivatives. Through its proprietary technology, ANGUS produces a unique portfolio of specialty additives and high-performance intermediates, which help customers deliver enhanced product and process performance across a wide range of applications in life sciences, personal care and high-growth industrial markets.

Over the last five years, Golden Gate Capital has meaningfully grown the business while repositioning it to focus on premium consumer applications. Ardian and Golden Gate Capital will partner with ANGUS President and CEO David Neuberger and the company’s current senior management team to grow the business through continued focus on and investment in core markets supplemented by development of application adjacencies and of new-to-world molecules.

“Management and Golden Gate Capital have built an impressive company and we are delighted to partner with them on this next phase of growth. ANGUS plays a critical role in the life sciences and personal care value chains, and its products have supported dozens of essential businesses over the last few months. With Ardian’s global reach and together with Golden Gate Capital, we plan to accelerate the company’s growth and provide ANGUS’ customers with a compelling range of products. We have deep expertise and an extensive network in the sectors served by ANGUS, and we intend to support the company in the implementation of a global buy & build strategy, similar to our approach with other successful investments,” said Thibault Basquin, head of Americas Investments at Ardian Buyout.

“We have enjoyed a highly successful partnership with David Neuberger and the entire ANGUS team over the past five years. Since our initial investment, ANGUS has driven exceptional growth and strengthened its global business through significant investments in the Company’s life sciences and personal care business segments, including major capacity expansions and the buildout of innovation and sales capabilities. These investments have enabled ANGUS’ transformation into a high-growth organisation. With this strong foundation in place, we look forward to supporting ANGUS’ continued growth alongside Ardian,” said Dave Thomas, a managing director at Golden Gate Capital.

“Ardian’s interest in ANGUS is a testament to our resilience, consistent growth, talented team and the extraordinary value of our current product portfolio and R&D pipeline. Likewise, Golden Gate Capital’s continued ownership in ANGUS is a testament to their belief in our future prospects. Over the course of our five-year relationship, we established ANGUS as an independent company; transformed our business into a stable, consumer-focused organization; increased our capacity for key chemistries like TRIS AMINO™ tromethamine; and enabled our customers’ own growth plans. The management team is excited to have the combined support of Ardian and Golden Gate Capital. We are confident that they share our strategic vision as we accelerate the growth of our innovative, high-demand chemistries,” said David Neuberger, president of ANGUS.

Christopher Sand, director at Ardian Buyout added, “Over the last five years, ANGUS has prospered.  ANGUS’ highly-regarded management team, unique product set, resilience, and growth prospects – both organic and via acquisition – makes it an ideal investment for Ardian, and we look forward to partnering with Golden Gate Capital.”

The transaction is expected to close by the end of 2020.

With seven offices in Europe and America, Ardian’s global buyout team acquires high-quality mid- and large-cap companies across Western Europe and North America, applying transformational and multi-cultural buy-and-build strategies which enable portfolio companies to become global leaders in their respective sectors. 

Citi and Guggenheim Securities LLC are serving as financial advisors to Ardian and Latham & Watkins is serving as the firm’s legal advisor.

Morgan Stanley & Co. LLC and JPMorgan Securities LLC are serving as financial advisors to Golden Gate Capital and Kirkland & Ellis LLP and Nob Hill Law Group, P.C. are serving as the firm’s legal advisors.