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