Grammer Industries tanker Charles Wilson/BT

Financial deal positions Grammer Industries for growth

Stellex Capital Management, a middle market private equity firm with offices in New York and London, announced it has completed its acquisition of Grammer Industries Inc in partnership with the Whittington family and management. Now entering its fifth decade, Grammer Industries is recognized as the premier provider of safe, dependable bulk hazardous transportation services in the United States. Terms of the transaction were not disclosed.

Grammer’s management team, under the leadership of Chief Executive Officer Bart Middleton and Vice-President John Whittington, invested in the transaction and will continue to lead the business on its current path of expansion and growth.

Based in Columbus IN, Grammer Industries is a leading transportation and logistics company for specialty and hazardous chemicals. The company provides a broad suite of integrated, specialized services including transportation, transloading, terminaling, and handling of chemicals and hazardous materials where safety, service, training, reliability, geographic coverage and efficiency are of paramount importance.

Michael Stewart, managing partner of Stellex Capital, said: “This is an exciting inflection point in the evolution of the North American chemicals industry supply chain, and we look forward to making future investments in the Grammer platform. Grammer is strongly positioned at the intersection of compelling trends in chemical production, logistics outsourcing and market consolidation.”

Grammer’s highly trained, seasoned team of more than 250 drivers and modern, meticulously maintained fleet of more than 350 specialty tankers transport anhydrous ammonia, liquefied petroleum gases, carbon dioxide, nitric acid, cryogenic liquids and other bulk hazardous materials and liquids on behalf of more than 120 customers to more than 1,000 unique delivery points spanning a diverse range of end markets.

“This is a great development for Grammer’s customers, suppliers, employees and owner-operators. The Company has a demonstrated track record of growth, and we will continue to expand and deepen Grammer’s position as the industry’s logistics partner of choice,” Middleton said. “We are very excited about our partnership with Stellex and our shared vision for the next phase of growth.”

Whittington added: “With the support of Stellex, Grammer will accelerate the further expansion of our geographic footprint and enhance our ability to serve our customers through both organic growth initiatives and acquisitions.”

Debt financing was arranged and provided by NewStar Financial (the Alternative Credit Group of First Eagle), Bain Capital Credit and CIT Financial. Kirkland & Ellis LLP represented Stellex in the transaction. Deloitte Corporate Finance; Milbank, Tweed, Hadley & McCloy LLP and K&L Gates LLP advised Stellex affiliates. Piper Jaffray & Co and Morgan, Lewis & Bockius LLP advised the company.

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