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  • Exits

HIG sells HCS Group's US oxo oils business

  • Harriet Matthews
  • Harriet Matthews
  • 26 March 2020
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HIG Europe has sold the US-based oxo oil products business of portfolio company HCS Group to Texas-based investment bank Aeicon Corporation.

The deal also includes the company's Texas-based manufacturing site, HC Manvel. HCS Group will focus on its core operations elsewhere in the US following the divestment, according to a statement.

HIG acquired Speyer-based Haltermann Products in July 2011, deploying equity via HIG Capital Partners I, which held a final close on €600m in July 2006. HIG provided bridge financing to support the transaction at the time.

HCS's oxo products division

  • DEAL:

    Partial sale

  • LOCATION:

    Manvel

  • SECTOR:

    Speciality chemicals

  • FOUNDED:

    1983

  • STAFF:

    30

  • VENDOR:

    HCS Group

Haltermann subsequently bolted on Petrochem Carless Holdings in April 2013. The companies together formed HCS Group. HIG deployed equity from HIG Europe Capital Partners I to finance the add-on. HCS planned to target organic growth in the global chemicals market, according to a statement at the time.

HCS has made a number of add-on acquisitions and divestments under HIG's ownership. It sold Haltermann Carless Fluids (HC Fluids) to fellow chemicals producer Solventis in July 2017.

HCS said in 2016 that it would consider an IPO once its EBITDA reaches €100m. At the time, the company was valued at around €500m.

Company
HCS Group is a speciality chemicals producer, headquartered in Frankfurt. The group comprises the brands Haltermann Carless, ETS Racing Fuels and Electrical Oil Services (EOS). The group had 450 employees as of February 2020.

The group's oxo-products division was formerly known as Shu-Chem Holdings and was established in 1983. It was originally acquired by HCS in July 2015. The company produces alcohols and esters for use in printing ink and in the pharmaceutical industry. It is headquartered in Manvel, Texas and employs 30 people.

People
HCS Group
– Henrik Krüpper (CEO); Daniel Haamann (US country manager).
Aeicon Corporation – Richard Heien (managing director).

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