Case study

ChemMasters

Overview

ChemMasters is a third-generation family-owned business that manufactures specialized concrete coatings and chemicals for highway, commercial, and residential construction projects.  The company maintained available capacity at its primary operating facility that it desired to fill through the acquisition of complementary businesses.

Services
Buy-Side: Strategic Acquisition Services
Industry

Specialized Chemicals

Challenge

The concrete coatings and chemicals industry is dominated by a handful of large manufacturers with a plethora of smaller participants competing for the remaining market share. ChemMasters, Inc. desired to acquire several of these smaller manufacturers to diversify their end markets, expand their geographic reach, and unlock synergistic value.

Solution

ChemMasters hired REAG to locate complementary acquisition targets and lead the company’s M&A initiative. The focus of the engagement was on the acquisition of manufacturers whose revenues were derived from a concentrated number of SKUs and sold primarily through distribution (versus the alternative model of direct to the end-user).

Results

In four years REAG led the client through two strategic acquisitions while growing annual revenues by approximately 55%. The first acquisition, Gateway Chemical, accomplished the goal of diversifying the client’s end markets while the second, Vexcon Chemicals, expanded geographic reach and added scale to the company’s core competencies.

1
Completed transactions
1
Years
1 %
Revenue
growth

Testimonial

“Our deals would not have been completed so smoothly without the contributions of REAG. We’ve been with them for some time and what sets them apart is Jaclyn’s ability to develop and manage new relationships with sellers and Scott’s ability to navigate roadblocks that would otherwise jeopardize a deal. They have been fantastic to work with.”

PJ Murphy, Chairman at ChemMasters