H.I.G. Capital, a prominent global alternative investment firm managing $64 billion in capital, has announced the sale of its portfolio company, USALCO, to funds managed by TJC (formerly The Jordan Company). H.I.G. will retain a minority stake in USALCO, and the transaction is anticipated to close in the coming months, pending customary conditions.
USALCO is a leading provider of water treatment solutions in North America, catering to both municipal and commercial clients. The company specializes in custom-formulated chemistries and offers advanced digital dosing and filtration cleaning services. With its headquarters in Baltimore, MD, USALCO operates 33 manufacturing and distribution facilities across North America, maintaining a strong market position and competitive cost structure.
H.I.G. acquired USALCO in June 2020, partnering with the company’s family owners. During its ownership, H.I.G. played a crucial role in enhancing USALCO’s management team, facilitating transformative mergers and acquisitions, and investing in the expansion of its production capabilities and geographic footprint. The firm also implemented operational improvements and developed a strategic plan for USALCO’s evolution into a leading water treatment solutions provider.
Kenneth Gayer, CEO of USALCO, praised H.I.G. as an exceptional partner, highlighting their support in transforming the company into a market leader. He expressed enthusiasm for the new partnership with TJC, indicating a commitment to further growth.
Keval Patel, Managing Director at H.I.G. Capital, commended the USALCO management team for successfully transitioning the company from a regional player to a differentiated solutions provider with significant growth potential. He expressed optimism about continuing to support USALCO’s success.
BofA Securities, Inc. and Citigroup Global Markets Inc. served as financial advisors for USALCO, while King & Spalding LLP acted as legal counsel for both H.I.G. Capital and USALCO during the transaction.
USALCO, headquartered in Baltimore, MD, is recognized for its innovative water treatment solutions, offering tailored chemistries and advanced services to meet diverse customer needs. The company’s extensive manufacturing and distribution network positions it as a leader in the industry, known for high-quality service and competitive pricing.
H.I.G. Capital, founded in 1993, specializes in providing debt and equity capital to mid-sized companies, focusing on management buyouts, recapitalizations, and corporate carve-outs. The firm also manages a publicly traded business development company, WhiteHorse Finance, and invests in real estate and infrastructure sectors.
With a track record of investing in over 400 companies globally, H.I.G. Capital continues to leverage its operationally focused approach to drive value and growth in its portfolio.
