Riverside makes Malaysia chemicals bolt-on

The transaction size was not disclosed. Erapoly supplies resins for use in commodity and engineering plastics as well as thermoplastics. The acquisition is intended to consolidate DCM Asia’s position as a leading specialty chemicals distributor in Malaysia by deepening its product offerings.

“EM has an excellent customer base and offers a wide array of polymers and elastomers that complement DCM Asia’s product portfolio,” Dominik Heer, a principal at Riverside, said in a statement. “Moreover, EM’s value-added services like custom compounding and recycling broaden DCM Asia’s integrated offering. This investment makes DCM Asia a larger, more efficient and diversified company.”

Founded in 1987, DCM Asia serves international chemical producers looking to supply the Malaysian market, counting some of the largest global paints and coating companies and consumer products companies among its customers. It has relationships with more than 50 international chemical companies and serves more than 600 customers with a portfolio of 700 branded products.

Riverside’s purchase of DCM Asia represented its first investment in Southeast Asia. As with the firm’s other investments in the region, DCM Asia was expected to grow organically and through selected add-on acquisitions.

Riverside makes control and non-control investments in growing businesses, and in Asia it concentrates on family-founded or small corporate carve-outs across healthcare, education, software, specialty manufacturing and franchise-based companies. The GP closed its second Asia fund at $235 million in 2014. Earlier this week, Riverside promoted Australia-based Steven Spiteri to partner.

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• Topics
• Southeast Asia
• Industrials
• Buyouts
• Malaysia
• The Riverside Company
• manufacturing