H.I.G. Capital Announces Sale of USALCO

August 5, 2024

Miami, FL – H.I.G. Capital (“H.I.G.”), a leading global alternative investment firm with $64 billion of capital under management, is pleased to announce that it has signed a definitive agreement to sell its portfolio company USALCO (“USALCO” or the “Company”) to funds managed by TJC (formerly known as The Jordan Company). H.I.G. will remain a minority investor in the Company. The transaction is expected to close in the next few months and subject to customary closing conditions.

USALCO is a leading provider of water treatment solutions for municipal and commercial customers in North America, offering bespoke formulated chemistries with best-in-class product efficacy. The Company’s unique digital dosing and filtration cleaning services address a diverse range of water treatment requirements.

Headquartered in Baltimore, MD, USALCO operates 33 manufacturing and distribution facilities throughout North America. The Company has a leading market position in each of the markets it serves, has the lowest cost position in the industry, and provides its customers with high levels of quality and service.

USALCO was acquired by H.I.G in June 2020 in partnership with the Company’s family owners. During its ownership, H.I.G. supported the Company in building a best-in-class management organization, executing transformative and highly accretive M&A, investing significant capital to expand USALCO’s specialty production capabilities and geographic reach, implementing extensive operational initiatives, and mapping out the strategic path for USALCO’s transformation into a differentiated, at-scale, water treatment solutions provider.

Kenneth Gayer, Chief Executive Officer at USALCO, commented: “H.I.G. has been an exceptional partner to USALCO and instrumental in helping us transform USALCO into the market leader we are today. H.I.G. supported significant investments across USALCO, which strengthened our ability to provide differentiated solutions and service levels to our customers. This management team is just getting started and couldn’t be more enthusiastic about our new partnership with TJC as we execute on our next phase of growth.”

“Ken and the USALCO management team have done an outstanding job transforming USALCO from a regional water treatment player to a differentiated water treatment solutions provider with compelling growth avenues that will take the business to the next level,” said Keval Patel, Managing Director at H.I.G. Capital. “USALCO is an outstanding company led by an exceptional leadership team and we look forward to participating in the Company’s continued success.”

BofA Securities, Inc. and Citigroup Global Markets Inc. were financial advisors to USALCO, and King & Spalding LLP represented H.I.G. Capital and USALCO as legal counsel in connection with the transaction.

About USALCO:

Headquartered in Baltimore, MD, USALCO is a leading provider of water treatment solutions for municipal and commercial customers in North America, offering bespoke formulated chemistries with leading product efficacy as well as unique digital dosing and filtration cleaning services to address a diverse range of water treatment requirements. USALCO operates 33 manufacturing and distribution facilities throughout North America. The Company has a leading market position in each of the markets it serves, has the lowest cost position in the industry, and provides its customers with high levels of quality and service. For more information, please visit usalco.com.

CPS Perfomance Materials owned a minority stake in USALCO