SK Capital Partners, a private investment firm with a focus on the specialty materials, chemicals, and pharmaceutical sectors, has acquired Niacet Corporation, a producer of specialty ingredients for food, feed and pharmaceutical applications and a global leader in propionates and acetates.
Headquartered in Niagara Falls, New York, Niacet currently serves more than 300 customers in 57 countries and employs approximately 190 people across its headquarters and two production facilities.
SK Capital is recapitalising Niacet in partnership with Kelly Brannen, who will continue to serve as CEO and retain a significant stake in the company. The Brannen family purchased Niacet from Union Carbide in 1978 and grew the company into the worldwide leader in its core products.
Jack Norris, a managing director of SK Capital, says: “The Niacet investment is consistent with SK Capital’s strategy of investing in niche market leaders in segments where we have significant industry, operating, and ownership experience and where we can be a strong value-added partner. With the Niacet acquisition, we are leveraging our expertise in the specialty ingredients sector, which includes our ownership of AEB Group and Noramco, as well as our previous success acquiring family businesses alongside management to support the next phase of their growth and improvement.”
Brannen says: “As a continuing owner of a significant share of the business, I am excited to partner with SK Capital, which is comprised of experienced and knowledgeable investors in our space who can provide insights, resources, and capital to support our business improvement and accelerate our growth. On behalf of the entire Brannen family, I would like to thank our employees for their dedication and hard work in driving the company’s success to date.”
Norris adds: “We look forward to working closely with Kelly, who we have known for almost a decade, and his management team to facilitate the realisation of their strategic objectives. This investment exemplifies the power of our sector-focused strategy where significant commercial and cost synergies can be generated across portfolio companies.”
Latham & Watkins acted as legal counsel to SK Capital and KeyBanc Capital Markets provided committed financing for the transaction. The Valence Group was exclusive financial adviser to Niacet Corporation.
