Deal Creates Standalone Operating Company Focused on Superior Customer Support, Sustainability, and Innovations that Power End-Market Growth in Pharma, Medical Device and High-End Personal Care
NASHVILLE, Tenn., August 1, 2023 — PureTech Scientific LLC today announced the completion of its acquisition of the Glycolic Acid business from The Chemours Company (NYSE: CC) for $137 million in cash, making PureTech Scientific a global leader in the organic synthesis of ultra-high purity alpha hydroxy acids for the Life Sciences and Specialty Chemical industries. PureTech Scientific was founded and backed by Iron Path Capital, a private equity firm specializing in lower-middle market investments across the specialty industrial and healthcare sectors.
Glycolic acid is a naturally occurring compound that exists in pineapples, sugar beets, cantaloupe, coffee beans, and many other plants and fruits, serving as a natural preservative and protector. While natural sources are too low in concentration to extract economically, PureTech Scientific produces a nature-identical synthetic glycolic acid that is readily biodegradable, serving as a key component across a variety of industries and applications, including pharmaceuticals, personal care products, clean & disinfect, oil & gas, and electronics.
“The carve-out of Glycolic Acid from The Chemours Company checks all the boxes for us: an exceptional team, a proprietary continuous-production manufacturing process, a superior product, a stellar reputation with its customers, established distribution channels, cutting-edge technology, and a diverse range of end-use applications that are as effective as they are environmentally friendly,” said Iron Path Capital Co-founder and Managing Partner Scott Mraz*. “PureTech Scientific is well-positioned to drive end-market growth through long-term investments in product innovation, high-touch customer support and a comprehensive organic and transformative growth strategy.”
Fellow Iron Path Capital Co-founder and Managing Partner Rob Reistetter said: “We believe that this acquisition and the creation of a standalone operating company invested in safety, integrity, continuous improvement, collective entrepreneurship, technical support, and strong research and development will bring significant value to PureTech Scientific customers and to the market.”
James Kanicky, Business Manager of the Glycolic Acid division with more than 20 years of industrial/specialty chemical experience, will serve as CEO/President of PureTech Scientific, along with Reginald Malmberg, CFO; Jeff Horsager, EVP Business Development and Marketing, Ashley Rine, VP of Operations; and Chandler Lee, Global Sales Director. The Leadership team provides a combined experience of over 125 years in the manufacture of Glycolic Acid and high-purity products.
“Under the PureTech Scientific brand, our customers can expect a continued attention to detail, quality and an uninterrupted supply of our glycolic acid products,” Kanicky said. “I’m especially excited about the new doors of opportunity that will be opened by PureTech Scientific’s infusion of technical expertise and resources in support of new customer-centered product applications, formulations and manufacturing capabilities.”
PureTech Scientific’s environmentally friendly and biodegradable portfolio of glycolic acid solutions includes:
- Glypure® – a high-purity glycolic acid that is a key ingredient in Personal Care products such as anti-aging and wrinkle removal serums, exfoliation peels, moisturizers and acne treatments for Personal Care products.
- Glypure® GL – a proactive form of Glypure that delivers the benefits of AHA to rejuvenate skin more effectively and efficiently with significantly reduced free acid and markedly lower skin irritation.
- Glypure® PGA – because Glypure PGA’s low parts per million (ppm) impurity level is well-suited for efficient, high molecular weight polyglycolic acid polymer synthesis, it can be used to manufacture PGA for the biodegradable plastics market.
- Glyclean® – a technical-grade glycolic acid that is a key ingredient in electronics, surface cleaners, semiconductors and other industrial processing uses.
- Glyclean® D – a newly formulated more effective, efficient, environmentally friendlier solution for the Clean and Disinfect market.
FORVIS, LLP is acting as Iron Path Capital’s financial advisor and McDermott Will & Emery is acting as its legal advisor.
About PureTech Scientific LLC
Headquartered in Belle, West Virginia, PureTech Scientific is the global leader in organic synthesis of ultra-high purity alpha hydroxy acids for the Life Sciences and Specialty Chemical industries, and the sole manufacturer in the Americas. With over 85 years operating experience and a commitment to reducing our carbon footprint, we are dedicated to delivering world-class products, innovations and customer support for a healthier and safer world. For more information, visit puretechscientific.com.
About Iron Path Capital
Founded in 2021 by seasoned investors and operating executives Rob Reistetter and Scott Mraz, Iron Path Capital is a private equity firm that specializes in building great businesses in the healthcare and specialty industrials sectors. With offices in Nashville, TN, and Charlottesville, VA, Iron Path Capital supports management teams with strategic leadership, operational expertise and flexible capital to achieve visionary growth plans through defined, defensible execution. For more information, visit ironpathcapital.com.
*Endorsements of Iron Path and portfolio company executives are provided to demonstrate the benefits of working with the Iron Path team. They are not provided to solicit investors in an Iron Path fund. The portfolio company executive featured in this endorsement is not an investor in an Iron Path fund and no compensation was provided for such testimonial.
**The specific investment identified is not representative of all of the investments purchased, sold, or recommended and it should not be assumed that the investment identified was or will be profitable. No guarantee of investment performance is being provided and no inference to the contrary should be made. Past performance is not indicative of future results. Actual holdings will vary for each fund. A list of all investments is available upon request.