Synalloy Acquires DanChem from Edgewater Capital Partners
RICHMOND, VA – October 28, 2021 – Synalloy Corporation (Nasdaq: SYNL), an industrials company focused on the production and distribution of piping, tubing and specialty chemicals, has acquired DanChem, an Edgewater Capital Partners portfolio company.
DanChem is a leading, full-service specialty chemicals contract manufacturing organization with three production plants located on an owned 55-acre campus in Danville, Virginia. The DanChem facility is particularly unique, boasting the largest fleet of horizontal reactors in the industry and producing a broad array of diversified products. DanChem’s exceptional team serves a variety of diverse and attractive end markets, resulting in a stable customer base that consists of notable blue-chip companies and a high rate of recurring revenue throughout its 61-year history. DanChem brings to Synalloy over 120 direct personnel across its three manufacturing sites, and the company’s management team will continue to serve in current and expanded roles to further accelerate the growth of Synalloy Chemicals.
“Acquiring DanChem is a pivotal step forward for Synalloy as we plan to significantly scale and accelerate profitable growth within our chemicals segment,” said Chris Hutter, interim president and CEO of Synalloy. “With robust manufacturing capabilities, a highly experienced team and a blue-chip customer base, DanChem will bolster our chemical operations while providing significant opportunities to grow into new end-markets with a wide array of commercial offerings. We also believe this acquisition creates a scalable specialty chemicals platform to become an acquirer of choice for other chemical companies that could further benefit from our breadth of services while serving to expand our capabilities and product offerings. We welcome the DanChem team to Synalloy and look forward to leveraging our combined manufacturing and engineering platform to continue performing critical chemistries for our customers.”
Commenting on the acquisition, John Zuppo, CEO of DanChem, stated: “Joining Synalloy Chemicals is an important milestone for DanChem as we believe the Company provides us with the necessary platform and support to execute our strategic goals. Our organization has grown steadily over the past two years with significant improvements to our margins, and we are even more confident in our future growth prospects with a robust pipeline of new products and customer engagements. We believe joining forces with Synalloy will allow us to further accelerate these growth opportunities, and we are excited to be a part of this growing company.”
Edgewater retained Taft Stettinius & Hollister LLP as legal counsel, and Fidus Partners served as financial advisor to DanChem and Edgewater.
About Edgewater Capital Partners
Edgewater Capital Partners, headquartered in Cleveland, Ohio, is a sector-focused private equity firm investing in lower middle-market performance materials and services businesses. Edgewater has extensive experience and expertise in the specialty industrials, advanced materials, specialty chemicals, and life sciences sectors. Twenty years of industry-specific investing has enabled the firm to develop a deep understanding of the complexities and nuances common to these businesses. The Edgewater Difference is summarized by our three foundational pillars: deep sector expertise, Midwestern values and culture, and growth-enabling philosophy. For more information on Edgewater Capital Partners, visit www.edgewatercapital.com.
About Synalloy Corporation
Synalloy Corporation (Nasdaq: SYNL) is a company that engages in a number of diverse business activities including the production of stainless steel and galvanized pipe and tube, the master distribution of seamless carbon pipe and tube, and the production of specialty chemicals. For more information about Synalloy Corporation, visit www.synalloy.com.