Owner Resource Group Completes Acquisition of KMCO, L.P., KMTEX, Ltd., and DOT Chemical Inc.
Tuesday, July 17, 2012
Press Release from NORA Member Owner Resource Group
Owner Resource Group, LLC ("ORG”) announced today that it has acquired a majority interest in KMCO, L.P., KMTEX, Ltd., and DOT Chemical Inc. (collectively "KMCO” or the "Company”) from the McFerrin family.
Founded in 1975 and headquartered in Crosby, Texas, KMCO is a leading specialty chemical company serving the automotive, petroleum, industrial and agricultural markets. The world’s largest and most recognized chemical companies depend on KMCO for custom chemical processing (tolling) and specialty chemical manufacturing.
Arthur "Artie” McFerrin, who will remain active as Chairman of the Company, said of the transaction: "Partnering with ORG will be very positive for the company, our customers and our employees. ORG brings additional capital and resources that will allow the company to improve upon the high quality products and services to which our customers are accustomed.”
ORG Managing Director Jon Gormin added, "KMCO and its affiliates are one of the leading batch chemical processors in the industry. We’re proud to partner with the McFerrins and support the management team as they continue to grow the company and serve the company’s outstanding array of customers.”
KMCO has thrived by providing reliable, high quality production and strong customer service for low volume (principally batch) specialty chemical products. Jeff McFerrin, who now serves as the President of the Company, added his support for the transaction, saying "We’re excited to work with Owner Resource Group to build on our 37 year history as a leading specialty chemical company.”
KMCO owns and operates two facilities. The KMCO facility is an ISO 9001 certified manufacturing plant on approximately 200 acres in Crosby, Texas. The facility includes eight distillation columns, 23 reactor systems and capacity for 250 rail cars. The KMTEX facility in Port Arthur, Texas sits on 32 acres with 20 million gallons of storage capacity for onsite terminaling as well as a 300 foot barge dock and 100 rail car spaces. The facility includes four stainless steel distillation columns and one carbon steel distillation column.
The transaction closed June 30, 2012. RCP Advisors, LLC , PNC Erieview Capital and Argosy Investment Partners IV, L.P. participated in the investment. GE Capital led the senior financing and PNC Erieview Capital led the subordinated debt financing.
About Owner Resource Group
Owner Resource Group is an Austin, Texas based private investment firm.
We make investments that enable business owners and management teams to
pursue their objectives. We provide certainty, fairness, flexibility,
and confidentiality to business owners considering a transaction. After
a transaction, our philosophy is to align our interests with management
to support the existing culture and the continued growth of the
business. ORG invests in companies with greater than $15 million in
revenue, long-term growth prospects, and a capable management team open
to our value-added, collaborative approach.
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