MDW Capital advises US Sponsor OpenGate Capital on $55.2 million cross border financing for Verdant Specialty Solutions
London, 14th May 2021
MDW Capital is pleased to announce its 11th completion of 2021. The Firm has advised the US sponsor, OpenGate Capital Management, LLC, (“OGC”), on financing OGC’s carve-out acquisition of Solvay SA’s North American and European amphoteric surfactant business, renamed Verdant Specialty Solutions (“Verdant”).
Serving more than 100 customers in 30 countries, Verdant is an important global supplier for many of the world’s most recognisable personal care, and home and hygiene brands. Focused on human well-being through the power of science and nature, the company has approximately 175 employees across three main production sites in University Park, Illinois USA, Halifax, UK and Genthin, Germany, together with a tolling business in Turkey.
The financing, comprising acquisition, revolving credit and committed M&A facilities totalling $55.2 million, was provided by Prudential Private Capital and ensures Verdant has access to significant follow-on capital to support management’s and OGC’s growth and add-on ambitions.
Matthias Gundlach, Managing Director at OGC commented “given the cross border nature of this carve out transaction, we needed confidence that our debt advisor understood the commercial challenges arising in such situations, as well as a deep understanding of international finance markets. It was clear from the outset that MDW Capital gets it, demonstrating best-in-class skill in articulating Verdant’s buy and build story to lenders. The end result was a well managed and competitive process, seamless coordination and partnership with management and our team, and an exceptionally strong and flexible financing package that will support the operational requirements as well as future acquisitions.”
John Foley, Verdant CEO added “in a cross border carve-out, flexibility of financing is absolutely critical. MDW Capital advised on our debt facility to maximise that, which will make it easier to realise our objectives while providing a structure that provides substantial working capital liquidity and follow-on capital to support our capex and M&A activities. Throughout the process, the MDW team created real lender confidence based on their evident understanding of Verdant’s needs.”
David Culpan, Managing Partner at MDW, remarked “this, our 11th completion of 2021, continues to evidence our international capabilities and skill in building a compelling credit story. MDW’s expertise and currency as borrowers and investors underpin the exceptional engagement all our clients receive. Moreover, they are the reason we understand our clients’ needs so well and deliver the right financing solution every time.”