Recochem, an H.I.G. Capital Portfolio Company, Completes Acquisition of KOST USA
MIAMI – December 2, 2020 – H.I.G. Capital (“H.I.G.”), a leading global alternative investment firm with $42 billion of equity capital under management, is pleased to announce that its portfolio company, Recochem (“Company”), a global leader in manufacturing, marketing, and distributing automotive aftermarket and household fluids, has acquired KOST USA Inc. (“KOST”).
Founded in 1985 and headquartered in Cincinnati, OH, KOST is the third largest manufacturer and marketer of coolants in the United States, selling light and heavy-duty coolants and other functional fluids to blue-chip customers across automotive aftermarket and industrial channels. KOST has grown its coolant business rapidly over the last several years by expanding its product portfolio and customer base while offering best-in-class product quality and customer service.
“The acquisition of KOST is strategically important for Recochem, significantly increasing the Company’s presence in the United States. The combined business is a leading manufacturer and distributor and one of the few scaled players in automotive aftermarket consumable fluids across North America,” remarked Richard Boudreaux, President and CEO of Recochem. “KOST has a loyal customer following and an excellent reputation for quality products and outstanding service. We are very excited about partnering with the team at KOST to support the company’s continued expansion.”
Tom Overdeck, Founder of KOST, commented, “We are very excited to join Recochem, and see tremendous commercial opportunity in the combined platform. We look forward to partnering with Rick and his team to continue serving our customers and expanding our offering across North America.”
“We are proud to have supported Recochem in its acquisition of KOST,” said Keval Patel, Managing Director at H.I.G. Capital. “KOST is a significant player in the U.S. coolant market, with a complementary suite of products and strong customer base. The transaction fits perfectly into Recochem’s strategy of further expanding into the U.S. and acquiring best-in-class companies that produce automotive aftermarket consumable fluids with significant value creation opportunities.”
KOST is the fourth acquisition that Recochem has completed since H.I.G. acquired the Company in August 2018.
About KOST USA
Founded in 1985 and located in Cincinnati, OH, KOST is the third largest manufacturer of coolant/antifreeze in the United States, primarily selling light and heavy-duty coolant to blue-chip customers across automotive aftermarket channels. The company also sells a variety of other functional fluids in the automotive aftermarket and industrial markets. KOST produces private label and branded products for its customers while providing superior service and technical capabilities. For more information, visit www.kostusa.com.
Founded in 1951 in Montreal, Recochem has grown into a leading manufacturer and marketer of branded, private label and bulk automotive aftermarket and household fluids for consumers and industrial customers worldwide. The Company operates a global platform, with a network across North America, Europe, Australia, China, India and the Asia Pacific region. Recochem’s strong reputation in the markets it serves has earned the Company vendor appreciation awards from its customers and long-standing relationships with its suppliers and partners around the world. With innovation and agility built into its DNA, Recochem is poised to continue its expansion into global markets while maintaining its core values of exceptional customer service, consistent product quality and environmental stewardship. For more information, visit www.recochem.com.
About H.I.G. Capital
H.I.G. is a leading global private equity and alternative assets investment firm with $42 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.
* Based on total capital commitments managed by H.I.G. Capital and affiliates