On July 2, 2012, Argosy Investment Partners IV, L.P. invested subordinated debt and equity to support the acquisition of KMCO, L.P. and its related entities (collectively “KMCO”). Founded in 1975 and headquartered in Crosby, Texas (35 miles east of Houston), KMCO is a leading specialty chemical company serving the automotive, petroleum, industrial and agricultural markets. Approximately two thirds of the Company’s revenues are derived from tolling/chemical processing services with the remaining sales driven by proprietary products.
Many of the world’s largest and most recognized chemical companies depend on KMCO for custom chemical processing (tolling) and specialty chemical manufacturing. The Company focuses on manufacturing specialty chemicals that require low volume batch (generally less than 100 million pounds per year) reaction, distillation or continuous distillation processes. KMCO’s batch process expertise is an ideal alternative for many specialty chemical manufacturers when the product volume does not justify the capital expenditures and start-up costs required to build such a facility. KMCO also specializes in (a) developing and manufacturing proprietary products including brake fluids, oilfield chemicals, glycols, antifreeze and cement grinding aids; (b) contract and proprietary blending; and (c) transloading.