HGGC and Charlesbank Capital Partners have completed the sale of Citadel Plastics Holdings, a global provider of thermoplastic and engineered composite compounds, to A. Schulman for $800 million.
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Citadel is a West Chicago, Illinois-based provider of comprehensive materials solutions operating 21 production facilities around the world.
The company offers a broad portfolio of proprietary compounds to diverse blue-chip customers spanning multiple industries including transportation, industrial & construction, consumer, electrical, energy and healthcare & safety.
Since HGGC and Charlesbank invested in the company in 2012, Citadel has grown both organically and through strategic acquisitions. The company added Lucent Polymers in 2013 and The Composites Group in late 2014, creating an industry leader with more than 1,300 customers and over 2,000 active products.
“We’re very proud that Citadel grew revenue and EBITDA by roughly 70 percent during our three-year investment period,” said Gary Crittenden, chairman of HGGC, who also served as chairman of Citadel.
Operational enhancements that strengthened the business during HGGC and Charlesbank’s ownership include the launch of a unified, industry-focused go-to-market strategy, implementation of a common operating discipline across the portfolio, and improved financial management.
“We had a great partnership with Citadel’s management team, as the results clearly show,” said Brandon White, managing director of Charlesbank, who also served on the Board of Citadel.
The sale of Citadel, in which HGGC had a controlling interest, marks HGGC’s seventh exit of 11 middle market platform investments made out of its $1.1 billion debut fund. In March, HGGC announced the closing of its $1.33 billion second fund. ■
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