H.I.G. Capital Portfolio Company USALCO Completes Merger with G2O Technologies

H.I.G. Capital ("H.I.G."), a leading global alternative investment firm with over $45 billion of equity capital under management, announced today that its portfolio company, USALCO, LLC (“USALCO”), has completed a merger with G2O Technologies LLC (“G2O”), a portfolio company of Arsenal Capital Partners (“Arsenal”). Ken Gayer, the current USALCO CEO, will lead the new company which will continue to bear the name USALCO.

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The USALCO and G2O merger creates one of North America’s leading water treatment chemical producers with 27 sites extending from California to Puerto Rico. The combined company will have in-house transportation capabilities and offer a range of products, including aluminum and iron salts, organic polymers, and specialty blended formulations.

“This merger marks an exciting milestone for our customers, employees, and stakeholders who depend on our services,” said Ken Gayer, CEO of USALCO. “Our complementary products and broader geographic reach will allow us to offer an expanded set of solutions that help improve our customers’ water treatment processes and protect our water resources.”

“We are very excited about the combination and look forward to partnering with Arsenal,” said Keval Patel, Managing Director at H.I.G. “This is a transformational step in USALCO’s strategy of becoming a leading provider of specialty water treatment solutions in North America.”

Roy Seroussi, Investment Partner at Arsenal, added, “This partnership will accelerate the technology and innovation advancements in the water infrastructure sector. We look forward to collaborating with H.I.G. and the USALCO management team.”

USALCO has demonstrated a strong track record of growth throughout its history. Including G2O, USALCO has completed four strategic transactions since H.I.G. recapitalized the business with Peter and David Askew in June 2020. USALCO acquired AlChem Specialties, LLC and CalCHEM Specialties, LLC in December 2020 and ALTIVIA’s water treatment business in September of this year.

About USALCO

USALCO is a leading provider of high-quality specialty chemicals used in water and wastewater treatment and other industrial applications in the United States. Headquartered in Baltimore, Maryland, USALCO operates 27 manufacturing facilities throughout the United States. For more information, please refer to the USALCO website at www.usalco.com.

About G2O Technologies

G2O Technologies was formed in early 2020 through a merger of Gulbrandsen and GEO Specialty Chemicals water treatment divisions. G2O supplies specialty chemicals for the water, wastewater treatment and industrial manufacturing markets. Headquartered in Phillipsburg, NJ, G2O operates 15 manufacturing and distribution facilities throughout the United States and in Puerto Rico. For more information, please refer to the G2O website at www.g2otech.com.

About H.I.G. Capital

H.I.G. is a leading global alternative assets investment firm with over $45 billion of equity capital under management.* Based in Miami, and with offices in New York, Boston, Chicago, Dallas, Los Angeles, San Francisco, and Atlanta in the U.S., as well as international affiliate offices in London, Hamburg, Madrid, Milan, Paris, Bogotá, Rio de Janeiro and São Paulo, H.I.G. specializes in providing both debt and equity capital to small and mid-sized companies, utilizing a flexible and operationally focused/ value-added approach. Since its founding in 1993, H.I.G. has invested in and managed more than 300 companies worldwide. The firm’s current portfolio includes more than 100 companies with combined sales in excess of $30 billion. For more information, please refer to the H.I.G. website at www.higcapital.com.

About Arsenal Capital Partners

Arsenal is a leading private equity firm that specializes in investments in middle-market industrials and healthcare companies. Since its inception in 2000, Arsenal has raised institutional equity investment funds of more than $7.0 billion, completed more than 200 platform and add-on investments and achieved more than 30 realizations. The firm works with management teams to build strategically important companies with leading market positions, high growth, and high value–add. For more information, please refer to the Arsenal website at www.arsenalcapital.com.

* Based on total capital commitments managed by H.I.G. Capital and affiliates

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