Boulder PE firm sells plastics maker to chemical company

BOULDER — Grey Mountain Partners closed on the sale of portfolio firm Dimex LLC to an affiliate of Westlake Chemical Corp. (NYSE: WLK). News of the deal broke Aug. 3.

A purchase price wasn’t disclosed but an Aug. 3 regulatory filing by Houston-based Westlake Chemical said its wholly owned subsidiary Rome Delaware Corp. was buying Dimex parent DX Acquisition Corp.

An Aug. 6 Westlake press release pricing $1.7 billion in senior notes to fund several pending acquisitions said $170 million of the debt was for its purchase of DX Acquisition Corp.

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Dimex recycles polyvinyl chloride (PVC) into products that include landscape and marine dock edging, deck and patio covers, and fitness equipment and barbecue mats. It has about 300 employees.

It fits alongside Westlake offerings that include PVC residential siding, trim and molding, and products for windows, doors, decks and roofs. Westlake trades at an $11.1 billion market cap.

A Westlake Chemical Corp. press release on the closing cited surveys showing consumers prefer to buy recycled products and that over the past four years Marietta, Ohio-based Dimex has secured 29 patents.

Grey Mountain pays up to $75 million for controlling interest in lower middle market companies, its press release on the deal and website said. M&A websites and news reports said it buys firms with at least $25 million in revenue and $5 million in earnings before interest, taxes, depreciation and amortization. It bought Dimex in 2014 from Brookside Mezzanine Partners in Stamford, Connecticut.

The Boulder private equity firm is investing from its $425 million Fund III.

William Blair & Co. advised it and Dimex on the just concluded deal.

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