Marwit Capital Announces Acquisition of Western Emulsions, Inc.
Newport Beach, CA – July 14, 2008 – Marwit Capital Partners II, L.P. (“Marwit”) announced today that it has recapitalized Western Emulsions, Inc. (the “Company”) in partnership with CEO Bob Koleas. Based in Tucson, Arizona with additional operations in California, Nevada and New Mexico, Western Emulsions supplies asphalt emulsions and raw asphalt used for roadway pavement preservation, repair and restoration projects. Western Emulsions’ CEO, Bob Koleas, will continue to run the business along with its existing management team.
“We are excited to partner with Western Emulsions, the leading innovator in asphalt emulsions, and its talented management team, lead by CEO Bob Koleas and CFO Don Lopez”, said Chris Britt, Managing Partner at Marwit. Mr. Britt continued, “Asphalt emulsions are increasingly becoming the preferred method of pavement preservation and rejuvenation for our nation’s roads, streets and highways and the Company is well positioned to capitalize on this trend.” Thomas Dollhopf, Marwit Principal, adds, “Poor road conditions across the U.S. means new infrastructure projects are a high priority and Western Emulsions’ pavement rejuvenation products offer a lower-cost, ecologically-friendlier and safer alternative to reconstruction while offering comparable quality, durability and reliability.”
Asphalt emulsion products extend the life and improve the safety of roadways. In the Southwestern U.S., the asphalt emulsions industry is currently estimated at $250 to $500 million and growing rapidly. “We’ve seen an increasing demand for asphalt emulsions in transportation projects and expect the industry to continue to expand at a healthy pace. With the addition of Marwit as our partner, we should be able to accelerate our strategy to grow organically and through selective value creating acquisitions. This accelerated growth will allow us to improve our already well known customer service and increase our product and service offerings,” said Bob Koleas, Western Emulsions’ CEO.
About Western Emulsions
With operations in Tucson, Arizona and Irwindale, California, Western Emulsions (www.westernemulsions.com) supplies specialty patented and standard asphalt emulsions and raw asphalt to a diverse array of customers, including: (i) federal agencies, such as those for roads and airports; (ii) state and local agencies, such as county and municipal public works departments; (iii) private entities, such as independent businesses; and (iv) intermodal consultation groups, such as government agencies who manage the highway infrastructure.
About Marwit Capital
Marwit Capital (www.marwit.com
) is one of the oldest and most experienced private equity firms in the western U.S. Founded in 1962, Marwit’s investment focus is on lower middle market companies based in the Western U.S., with revenues of $20 to $100 million and enterprise values up to $100 million. Marwit specializes in management buyouts, platform LBO acquisitions in partnership with experienced industry executives, recapitalizations, and later stage growth investments. Marwit seeks to invest $10 to $30 million of equity capital per portfolio company, in one or a series of investments, and has invested more than $250 million since 1995. Marwit is currently investing out of Marwit Capital Partners II, a $183.7 million fund.