Situation Overview:

The majority owner of a successful and rapidly growing, privately-owned developer and marketer of proprietary chemicals, including metalworking fluids, industrial lubricants, and cleaners, was looking to sell the business.

Our Client:

• Based in Los Angeles, California, Chem Arrow Corporation (https://www.chemarrow.com/) (“Chem Arrow”) is a manufacturer and distributor of chemicals, including metalworking fluids, industrial lubricants and cleaners.
• Founded in 1977, Chem Arrow is a chemicals manufacturer and distributor with a 45 – year history of serving leaders in HVAC and industrial manufacturing. Chem Arrow has a manufacturing facility in Los Angeles, California, offices in Canada and the United Kingdom and tolling and distribution partnerships in Asia.
• The majority shareholder of Chem Arrow, Mr. Al Spaulding, Chairman, took over the business from his father who founded the business. As he was seeking to formally retire, he decided to sell the business and related real estate.
• The Company’s second largest shareholder, Mr. Hamish Mitchell, President & CEO, who had worked at Chem Arrow for over 20 years, was also seeking to establish his own plan for retirement at the same time.
  
  

The Goal:

• Maximize the value for the Company while ensuring the future success of the business by selling it to a strong future owner in a highly confidential process.
• Conduct a very targeted sale process soliciting interest from select strategic buyers, including private equity-owned corporate acquirors.
  
  

 The Outcome:

• Chem Arrow was successfully sold to an affiliate of Motul (https://www.motul.com/en-US).
• Founded in 1853 and based in Aubervilliers, France, Motul is a $2 billion revenue family-owned global supplier of high-performance lubricants for engines used by the world’s most demanding motorsport teams and original equipment manufacturers.
• Motul acquired Chem Arrow to strengthen its presence in the U.S., a market which had been growing faster than Motul’s other markets, including most notably its core European market, expand its business in metalworking fluids and lubricants and gain access to Chem Arrow’s attractive customer base.
• Olivier Montange, President of the Management Board of Motul said, “The acquisition of Chem Arrow Corp. is an important step in our external growth strategy. Our goal is to drastically strengthen our footprint in North America, and it is a natural move as the Motul brand was born in Pennsylvania in 1853. A big thanks to all the stakeholders who were involved in this successful process.”
• Mr. Hamish Mitchell, President, CEO and Shareholder of Chem Arrow said, “Thank you to our employees, customers, and suppliers, all of whom have been key to our success. We are excited about this partnership with Motul and the opportunity to accelerate the growth of both businesses.”
• He added, “We also want to thank our investment bankers at Calabasas Capital, led by David Bonrouhi and Andrew Williamson, who did a fantastic job representing the shareholders of Chem Arrow in this transaction. Their keen M&A expertise was instrumental in completing this deal at a strong valuation and they worked collaboratively with our team from start to finish.”