One Rock Capital Partners LLC (New York) announced that one of its affiliates has entered into a definitive agreement with Newell Brands to acquire its Process Solutions business. Based in Greenville, SC, Process Solutions is a material sciences company offering custom-designed plastic, nylon, monofilament and zinc products to the healthcare, consumer and industrial end markets.
By leveraging its value engineering and manufacturing technology, the company offers its services to a variety of commercial industries and customers, as well as government agencies, globally. Process Solutions is also the primary supplier of copper-plated zinc penny blanks to the U.S. Mint as well as coinage to other countries.
Tony W. Lee, Managing Partner of One Rock, commented, “Process Solutions develops a variety of high-quality products that serve diverse end markets and surround us every day. One Rock has substantial experience investing in specialty manufacturing businesses, and we intend to build upon the company’s success in delivering highly engineered solutions for its blue-chip customers.”
According to a report in MarketWatch by Tomi Kilgore, Newell Brands said it expects $500 million in proceeds from the deal. Shares of the consumer products company, which includes such brands as Sharpie, Elmer’s, Graco and Rubbermaid, rose 1.2% in premarket trade. The Process Solutions business had net sales of $640 million in 2018, or about 7.4% of Newell’s total sales of $8.63 billion.
One Rock Managing Partner R. Scott Spielvogel added, “We believe that as a standalone business, Process Solutions can expand its offerings and bolster its global customer relationships. Working together with management and our operating partners, we look forward to growing the company through strategic acquisitions and operational and technological improvements.”
Process Solutions operates out of 19 facilities across the United States, United Kingdom and Puerto Rico and has approximately 1,700 employees. CEO Chuck Villa said, “We are excited to partner with One Rock as we embark on our next phase of growth. With One Rock’s vision and strategic resources, we look forward to continuing to provide innovative products to both our longstanding and new customers.”
The transaction is expected to close in the second quarter of 2018, subject to customary closing conditions, including regulatory approval.
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