Private equity firm HIG Capital of Miami has made another plastics-related materials deal, this time buying a majority share of Canadian pigments supplier Dominion Colour Corp.
No purchase price was disclosed in the deal. DCC is based in Toronto and supplies pigments to plastics, coatings, specialty inks and paints markets. The firm was founded in 1946 and has more than 400 customers in 70 countries. DCC operates plants in Canada, the Netherlands, and the United Kingdom, as well as technical sales offices throughout the Americas, Europe, and Asia.
“DCC has been a leader in designing, developing and manufacturing new and innovative color pigments for more than 70 years,” HIG managing director Keval Patel said in an Oct. 5 news release. “We plan to work with the team to further expand the product portfolio both organically and through acquisitions.”
DCC CEO Michael Klein and CFO Jack Nelligan will remain as minority shareholders and will provide consulting support for a transition period. Executive vice president Mark Vincent will become DCC's new CEO.
HIG has made several plastics-related deals in recent years. In late 2014, the firm paid $154 million in cash for the North American polymer additives business of Ferro Corp. The sale included plants in Ohio, New Jersey and Texas, making various types of plasticizers. HIG renamed that business as Valerus Specialty Chemicals before changing the name again to Valtris.
Then in April of this year, Valtris bought international specialty chemicals company Akcros Holdings Ltd. for an undisclosed price. Products made by Akcros include polymer additives.
HIG also previously owned plastics processor Vaupell Holdings Inc. — a Seattle-based supplier to the commercial aerospace market — before selling the business for a reported $625 million in late 2014 to Sumitomo Bakelite Co. Ltd. of Tokyo.
