Huntsman-related equity firm buys Citadel Plastic Holdings

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WEST CHICAGO, ILL.  (March 1, 9:55 a.m. ET) — Citadel Plastic Holdings Inc. has been acquired by Huntsman Gay Global Capital, a private equity firm co-founded by plastics Hall of Famer Jon Huntsman.

No purchase price was disclosed in the deal, which was announced March 1.

West Chicago.-based Citadel was founded in 2007 by private equity firm Wind Point Partners of Chicago and since then has purchased six plastics materials firms. Its two largest holdings are compounder Matrixx Group of Evansville, Ind., and thermoset materials maker Bulk Molding Compounds Inc. of West Chicago, Ill.

Citadel has annual sales of about $300 million, operating 14 plants in seven countries.

Huntsman Gay is based in Palo Alto, Calif., and has $1.1 billion in total investments, including 10 portfolio companies. Jon Huntsman co-founded the firm along with four partners, including Robert Gay, former managing director of Boston private equity giant Bain Capital LLC, and NFL Hall of Famer Steve Young, a former quarterback for the San Francisco 49ers.

Citadel is Huntsman Gay’s first investment in the plastics and chemicals sector.

“We’ve been looking at chemical businesses for some time, and Citadel Plastics presented the perfect opportunity,” Huntsman Gay managing director Gary Crittenden said in a news release. “We really like Citadel’s focus on highly-engineered custom compounds.”

Citadel CEO Mike Huff added in the release that Huntsman Gay’s “heritage and experience in the chemical and plastics industry, combined with their global relationships, distinguished them as our preferred partner.”

Jon Huntsman serves as chairman of Huntsman Corp., the global plastics and chemicals maker that he founded in 1970. Products produced by the firm include polyurethane and other thermoset materials.