USALCO, LLC, a prominent provider of water treatment solutions, has announced that TJC, L.P. will acquire a controlling interest in the company from H.I.G. Capital. The deal, confirmed on August 5, 2024, will allow USALCO to maintain its current management team, who are also significant investors in the business.

Founded in 1980 and based in Baltimore, Maryland, USALCO specializes in water treatment products, including coagulants and digital dosing technologies. The company operates 33 manufacturing and distribution centers across the U.S., providing high-quality products and services backed by extensive research and analytics.

H.I.G. Capital acquired USALCO in June 2020, facilitating its growth through strategic acquisitions and investments in production facilities and R&D. During this period, USALCO expanded its product lines and geographic reach, establishing itself as a leader in the North American Specialty Coagulants market.

USALCO CEO Ken Gayer expressed enthusiasm about partnering with TJC for the company's next growth phase. He emphasized the importance of expanding their Specialty Coagulants platform and enhancing new products and digital offerings to improve sustainability and cost-effectiveness for customers. Gayer also acknowledged H.I.G.'s support over the past four years, which helped position USALCO as a market leader.

TJC Partner Ian Arons highlighted the increasing demand for innovative water treatment solutions, expressing eagerness to collaborate with USALCO to create a world-class company that benefits all stakeholders. H.I.G. Managing Director Keval Patel noted the initial investment was driven by the need for improved municipal and commercial water solutions, and he looks forward to TJC's partnership in furthering USALCO's transformation.

The transaction is expected to close by the end of Q3 2024, pending customary closing conditions and regulatory approvals. Financial advisors for USALCO included BofA Securities and Citigroup Global Markets, while King & Spalding LLP represented H.I.G. and USALCO legally. TJC is represented by Kirkland & Ellis LLP, and Goldman Sachs has committed to providing debt financing for the deal.

USALCO is recognized for its tailored water treatment solutions, addressing a wide range of customer needs. With its extensive operational network, the company continues to focus on delivering effective and efficient water treatment products.

TJC, formerly known as The Jordan Company, has over 40 years of experience working with various industries, managing $29.7 billion in assets as of March 31, 2024. The firm has a strong track record of investing in middle-market companies and is based in multiple U.S. cities.

H.I.G. Capital, a global alternative investment firm with $64 billion in capital under management, specializes in providing flexible debt and equity capital to middle-market companies. With a broad international presence, H.I.G. has been instrumental in supporting USALCO's growth and development.