On 5 August 2024, private equity (PE) firm TJC (formerly The Jordan Company) acquired USALCO from H.I.G. Capital for an estimated US$2 billion, with H.I.G. retaining a minority stake. Baltimore, Maryland-based USALCO manufactures aluminum-based chemicals (i.e., aluminum sulfate, sodium aluminate, polyaluminum chloride, aluminum chlorohydrate, and aluminum chloride) used as coagulants and flocculants in industrial and municipal water and wastewater treatment segments.
Founded in 1982, TJC is a New York-based PE firm that invests in middle-market companies with revenues of US$50 million to US$1 billion. The firm invests in manufacturing, chemicals, consumer goods, business services, and healthcare. This transaction represents TJC’s second chemical company purchase from H.I.G.
In the aftermath of recent headwinds, PE firms’ investment opportunities in the chemical sector are poised to grow for established players with demonstrated expertise. Given the supplier fragmentation, the market could be ripe for more deal flow.
In this Research Note:
- TJC acquires USALCO at the forefront of peer group
- Inorganic growth fundamental to PE, water chemicals playbook
- Supply chain security an elevated priority for domestic chemicals market
