Grace Matthews, Inc. Announces the Acquisition of
ColorMatrix Corporation by Audax Group
MILWAUKEE, WI – May 24, 2006 – Grace Matthews, Inc. announced today the sale of ColorMatrix Corporation’s global operations to Audax Group, a private equity group based in Boston and New York. With operations in North America, Europe, South America, and Asia, ColorMatrix is the world’s largest manufacturer of liquid colorants and additive concentrates for thermoplastic products. The co-founders of ColorMatrix, John Haugh and Michael Shaughnessy, as well as ColorMatrix’s European shareholders/directors, have retained significant ownership positions in the Company and will remain in their present positions of leadership. Grace Matthews, Inc. of Milwaukee advised ColorMatrix’s shareholders on the transaction, with legal counsel provided by the Cleveland firm of Benesch, Friedlander, Coplan and Arnoff. Debt financing was provided by a syndicate of banks led by GE Antares Capital, with GSO Capital providing mezzanine capital.
Doug Mitman, a Managing Director at Grace Matthews, commented: “Audax recognizes that ColorMatrix’s unique technology, strong management, and industry reputation represents a very strong platform for future growth. With Audax providing growth capital and global operating expertise, ColorMatrix should be able to accelerate its growth in the international markets, especially in China and other emerging markets.” John Beagle of Grace Matthews added that “…the transaction provides an opportunity for ColorMatrix to combine its global operating units under a single umbrella. This makes sense from a customer standpoint, since many of ColorMatrix’s largest customers are establishing operations globally and want to maintain product consistency across geographic boundaries. With the best liquid colorant and additive technology out there, ColorMatrix will be positioned to become one of the premier suppliers to the global plastics industry.”
ABOUT GRACE MATTHEWS
Grace Matthews, Inc. is a Milwaukee, WI investment bank that provides merger, acquisition, and corporate finance services to private and public companies. Grace Matthews has specialty expertise in chemical industry transactions, with its Managing Directors having completed over 50 acquisitions, buyer searches and management buy-outs over the past decade. For more information visit the Grace Matthews website at www.gracematthews.com.
ABOUT COLORMATRIX
Founded in 1978, ColorMatrix provides engineered solutions that optimize product quality and production processes for manufacturers of thermoplastic products. The company supplies liquid colorants and additive concentrates, as well as related dosing equipment, used to manufacture thermoplastic products such as PET (polyethylene terephthalate) beverage bottles, plastic consumer products and automotive components, vinyl siding, vinyl pipe, and other items. The Company is headquartered in Cleveland, Ohio, and has an additional facility in Texas. International operations are located in Knowsley, England; Eindhoven, The Netherlands; Itupeva, Brazil; and Hong Kong, China.
ABOUT AUDAX GROUP
Audax Group, founded in 1999, is a leading investor in middle market companies. With offices in Boston and New York, Audax Group manages in excess of $2 billion in equity and mezzanine debt capital. For more information visit the Audax Group website http://www.audaxgroup.com
CONTACT:
Doug Mitman
414-278-1120
dmitman@gracematthews.com