© 2017 The Texas Lawbook.
By Natalie Posgate
(June 16) – A group of lawyers from Haynes and Boone led by Bill Nelson on Thursday closed a $495 million acquisition for Fort Worth-based KMG.
The global specialty chemicals provider has officially acquired Waller, Texas-based Flowchem from Arsenal Capital Partners. Flowchem manufactures chemicals that help crude oil and refined fuel – for the lack of a better word – “flow” more easily through pipeline equipment. The chemical that facilitates the flow is commonly known among the chemicals industry as drag reducing additives, or DRA.
Nelson, who has represented KMG for more than a decade, said the Flowchem acquisition fits well with KMG’s desire to grow its presence in specialty chemicals – particularly performance materials. Earlier this year, Nelson represented KMG when it acquired Sealweld, a Canadian provider of high-performance products and services for industrial valve and actuator maintenance.
“I think it’s a great deal for the client, and fits with the deals they’ve been doing,” Nelson said.
Nelson said Houston corporate lawyer John Menke and finance partner Joseph Vilardo were “instrumental” in the transaction. The Haynes and Boone deal team also included Austin partner Mary Mendoza; Houston partner Jesse Gelsomini; and Houston associates Simin Sun, Ochuko Isikuru and Brent Shultz.
Haynes and Boone’s New York office was also involved.
KMG General Counsel Roger Jackson and Associate General Counsel Nick Gaspard also played an active role in getting the deal done, as well as Monte Green, who heads KMG’s A&D team, and KMG CEO Chris Frasier, who Nelson said “was there every step of the way.”
A Chicago-based team from Kirkland & Ellis represented Flowchem and Arsenal, as well as a team from Jones Day.
A group of Los Angeles lawyers from Latham & Watkins advised KeyBanc Capital Markets in its for its role as a lead arranger for the debt financing used by KMG to acquire Flowchem.
© 2017 The Texas Lawbook. Content of The Texas Lawbook is controlled and protected by specific licensing agreements with our subscribers and under federal copyright laws. Any distribution of this content without the consent of The Texas Lawbook is prohibited.
If you see any inaccuracy in any article in The Texas Lawbook, please contact us. Our goal is content that is 100% true and accurate. Thank you.