Private equity investment by CI Capital sets up Maroon for more growth

By Michael Lauzon
Correspondent

Published: July 8, 2014 11:40 am ET
Updated: July 8, 2014 11:46 am ET

Image By: Maroon Group LLC Maroon Group LLC President and CEO Mark Reichard, center, and the company's executive team.

Related to this story

Topics Materials, Mergers & Acquisitions, Materials Suppliers

Specialty chemical distributor Maroon Group LLC has a new majority owner, private equity firm CI Capital Partners LLC.

Maroon, based in Avon, Ohio, distributes additives and pigments for plastics and other industries. It also distributes thermoset and thermoplastic resins for coatings and graphic arts industries, explained Maroon vice president of corporate operations Mike McKenna in a phone interview. Maroon principals include Allcoat, Asahi Glass Co., Eastman Chemical Co., Evonik, Inchem and Omnova.

“We believe the company is well-positioned to continue its strong growth, both organically and through selective add-on acquisitions in the highly fragmented specialty chemical distribution industry,” noted CI Capital managing director Joost Thesseling in a news release.

CI Capital acquired an undisclosed majority stake in Maroon and the distributor’s management team retains an equity interest in the firm. The parties did not disclose terms of the deal which closed June 30.

CI Capital lists interests in three other distribution companies in its portfolio. The New York equity firm’s distribution subsidiaries supply building materials, uniforms and duty gear, and specialty gases for industrial and medical markets. CI Capital also owns specialty plastics packaging company IntraPac Group, a Mississauga, Ontario, company that produces jars, bottles, closures and tubes; blow molder KIK Custom Products of Concord, Ontario; and vinyl siding extruder Ply Gem Holdings Inc. of Cary, N.C.

Maroon, established in 1977, has 11 stocking locations in the United States, Canada and Mexico. Its customer list of nearly 900 companies buys more than 30 million pounds of products annually. Other key markets are composites, adhesives and rubber.

“CI Capital’s resources, extensive experience in the distribution industry and track record of helping businesses like ours grow make them an ideal partner for our organization,” stated Maroon President and CEO Mark Reichard in a July 7 news release.

CI Capital has been investing in middle-market companies since 1993. Its existing portfolio of companies generates annual revenue of more than $4 billion, more than $400 million in earnings before interest, taxes, depreciation and amortization, and employs about 14,000.


Comments

Private equity investment by CI Capital sets up Maroon for more growth

By Michael Lauzon
Correspondent

Published: July 8, 2014 11:40 am ET
Updated: July 8, 2014 11:46 am ET

Post Your Comments


Back to story


More stories

Image

New medical firm buys Clairson Plastics

September 19, 2014 4:33 pm ET

Custom injection molder Clairson Plastics is being sold to a new start-up that plans to dive into the medical market with a new dialyzer, a key...    More

Image

Hong Kong's TK eyes expansion, may buy Nypro Tool operation

September 19, 2014 2:49 pm ET

Hong Kong-based mold maker and plastics processor TK Group (Holdings) Ltd. said it's reached a tentative agreement to buy a tooling factory in...    More

Exo-s buys injection and blow molder in Mexico, expands footprint

September 19, 2014 2:15 pm ET

Custom molder Exo-s Inc. has bought an injection and blow molding operation in San Juan del Rio, Querétaro, Mexico.    More

Image

Foster building medical polymers plant

September 19, 2014 1:39 pm ET

Foster Delivery Science is investing $8 million in a new plant in Putnam, Conn., for production of medical polymer blends, as well as rods, film or...    More

Image

BP to restart damaged PTA unit in limited capacity by November

September 19, 2014 10:27 am ET

British Petroleum plc may restart its fire-damaged purified terephthalic acid (PTA) feedstock unit in South Carolina in late October or early November...    More

Market Reports

Plastics Caps & Closures Market Report

The annual recap of top trends and future outlook for the plastics caps & closures market features interviews with industry thought leaders and Bill Wood’s economic forecast of trends in growing end markets. You will also gain insight on trends in caps design, materials, machinery, molds & tooling and reviews of mergers & acquisitions.

Learn more

Shale Gas Market - Analysis of North American Region

This report highlights the impact of shale-based natural gas on the North American plastics market and features an in-depth analysis of production trends in the United States during 2013 and a forecast for 2014 and beyond.

Learn more

Thermoformed Packaging 2014 Market Review & Outlook – North America

This in-depth report analyzes economic and market trends, legislative/regulatory activity impacting supply and demand, business opportunities and threats, materials pricing, manufacturing technology, as well as growth strategies being implemented by thermoformed packaging companies.

Learn more

Upcoming Plastics News Events

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

More Events