Citadel Plastics Holdings Inc. (West Chicago, Ill., USA), a global provider of thermoplastic and engineered composite compounds, on Oct. 13 announced that it has signed a definitive agreement to acquire The Composites Group (TCG, Cleveland, Ohio, USA), a manufacturer of engineered composite compounds, from Highlander Partners L.P. (Dallas, Texas, USA). The transaction is expected to close by November. Terms were not disclosed.
Citadel notes that TCG has differentiated itself in the engineered composites industry through its ability to formulate, source and use high-performance specialty composite materials. By providing customers with an integrated product solution for demanding end-use needs, such as oil and gas, TCG further demonstrates its unique positioning within the engineered composites market.
The acquisition of TCG will be the eighth plastics-related acquisition for Citadel since 2007 and the 39th overall acquisition since 2008 for HGGC, a middle-market private equity firm with a controlling interest in Citadel. This acquisition, along with the 2013 acquisition of Lucent Polymers, accelerates the evolution of Citadel into a global leader of highly engineered thermoplastic and engineered composite compounds.
“TCG is a very strategic acquisition for Citadel, bringing outstanding expertise in material science technology, as is evidenced by its broad portfolio of proprietary engineered composites spanning BMC, SMC,TMC, and high-performance composites,” says Mike Huff, CEO of Citadel. “The addition of TCG, our eighth acquisition since setting out to build a comprehensive materials solution provider, will significantly increase our presence in engineered composites and improve our positioning for future growth with existing and new customers in current and new end markets.”
“The addition of TCG expands Citadel’s ability to fulfill a variety of customer needs across multiple sectors,” says Kevin Andrews, president of Citadel Engineered Composites. “Like Citadel, TCG is critical to its customers’ development initiatives. The combination of experience and greater global scale achieved through this transaction enhances both organizations’ ability to partner with customers to provide innovative technical solutions.”
“The combined businesses of Citadel and TCG create a complementary platform that is well positioned to serve the needs of our collective customer base today and in the future,” says Terry Morgan, CEO of The Composites Group.
“We are very pleased to build on Citadel’s proven ability to grow through strategic acquisitions and integration of successful, complementary businesses,” says Gary Crittenden, chairman of HGGC, who also serves as chairman of Citadel. “We’re confident TCG’s blue-chip customer base and financial strength will help Citadel extend its leadership in highly engineered compounds.”