Investment Case Study: BasTech LLC

bastech_logo

BasTech LLC

Niche Specialty Chemical Provider within Paper/Pulp and Mining Chemical Segment

  • Overview:
    • Company founded in 1961 and profitable every year
    • Proprietary performance product drove strong customer relationships and recurring revenues
    • Founder limited growth to a lifestyle business resulting in low penetration of a large potential market (100+ U.S. pulp mills)
    • Attractive EBITDA margins
    • Management buyout completed by Former Dow Chemical executives, Mssrs. Rex and Durrant, with The Courtney Group and Cave Creek Capital in August 2007
  • Post-transaction actions taken to create value:
    • Substantial investment made to expand Company’s facilities, marketing, and administrative systems
    • Hired additional Senior Executives
    • Expanded R&D programs with several existing products and several under development
    • Launched international sales effort
  • Results:
    • Sales have grown 130% since closing
    • Customer base has increased threefold
    • Cash Flow (EBITDA) has increased over 100% in three years