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Palladium Equity Partners Acquires American Gilsonite Company
New York, NY (March, 2008) — Palladium Equity Partners, LLC (“Palladium”), a New York-based private equity firm, announced that it has acquired American Gilsonite Company, Inc. (“AGC”), a leading provider of high-quality Gilsonite and Gilsonite products and services, in a transaction valued at approximately $74 million.
Based in Bonanza, Utah, AGC is an industrial mineral company and the world’s leading miner and producer of uintaite, a specialty hydrocarbon, marketed under the “Gilsonite®” trademark. AGC operates five active mines and processing facilities where Gilsonite is further processed to create products of varying particle size, melting point, viscosity, solubility and purity. AGC, through its predecessor companies, has been in business since 1888.
David Perez, Managing Director of Palladium Equity Partners, said, “We are very pleased to have completed this transaction, and look forward to working with AGC’s management, employees and customers as we pursue new growth. As the world’s leading supplier of Gilsonite, AGC provides a series of products and services for specialized applications in oil and gas drilling, inks and paint production, foundry work and asphalt production. We intend to build upon the current strong demand and preference for Gilsonite products to enhance existing products and services and foster new initiatives for the Company.”
About American Gilsonite Company
American Gilsonite Company (www.americangilsonite.com) is an industrial minerals company and the world’s primary miner and processor of uintaite, a variety of asphaltite, a specialty hydrocarbon which the Company markets to industrial customers under its registered trademark name “Gilsonite®”. Gilsonite is a glossy, black, solid naturally occurring hydrocarbon similar in appearance to coal or hard asphalt and is believed to be found in commercial quantities only in the Uinta Basin in northeastern Utah. Because of its unique chemical and physical properties, Gilsonite is used in more than 160 products. The Company sells its products to customers in four primary markets: (i) oil and gas, (ii) inks and paints, (iii) foundry and (iv) asphalt.
About Palladium Equity Partners
Palladium Equity Partners, LLC (www.palladiumequity.com) is an investment firm targeting companies in food/restaurants, financial and business services, consumer/retail, healthcare, manufacturing and media. Palladium has a focus on companies that are well-positioned to capitalize on the fast-growing U.S. Hispanic market. The principals of Palladium have invested over $2.5 billion of equity in more than 60 portfolio companies over the last two decades. Formed in 1997, Palladium currently has capital under management in excess of $1 billion.
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Contacts:
Palladium Equity Partners
David Lilly/ Lyndsey Estin
Kekst & Company
212-521-4800