Sep 17, 2018

Palo Duro Capital forms CCR Specialty Chemicals September 17, 2018 PRESS RELEASE DALLAS, Sept. 13, 2018 /PRNewswire/ — Palo Duro Capital, LLC (“Palo Duro Capital”), an industrial-focused private equity firm, in partnership with a dedicated chemical sector SPV controlled by Mario Toukan (together the “Sponsor”), announced today that it has formed CCR Specialty Chemicals, LLC (“CCR” or the “Company”) in connection with the acquisition of Crowley Chemicals, Inc. (“Crowley”) and Rusmar, Inc (“Rusmar”). CCR is a specialty formulator of performance chemicals serving a diverse range of end markets. Crowley produces a line of specialty aromatic oil blends used by compounders to extend aromatic polyurethanes, epoxy resins, aromatic based rubbers, PVC plastisols and unsaturated polyester resins which lower formulation costs and improve overall performance. Rusmar has developed a series of water-based and latex-based aqueous foam solutions that have a variety of health, safety and environmental applications in the landfill, environmental remediation and mining markets. “Crowley and Rusmar are recognized leaders in providing high performance solutions to demanding end markets,” said Palo Duro Capital Partner Matthew Golden. “The management team has done an extraordinary job driving strong operational performance while continuing to extend the Company’s reach into new applications.” Mario Toukan added “The company has an excellent track record driven by a customer centric focus and high quality products, and we look forward to investing additional capital to support both organic growth initiatives and strategic follow-on acquisitions.” “The management team at CCR is tremendously excited to partner with this team of seasoned specialty chemical investors,” said Bill Callanan, CCR CEO and Chairman. “We have an exceptional opportunity to accelerate growth and make investments in product formulations to provide tailored solutions for our customers. Mario and Matt’s reputation in the chemicals sector and track record for investing in and growing businesses is impressive. This makes them ideal partners for CCR and I am very excited to collaborate with them on this opportunity.” “The combination of CCR’s best-in-class product portfolio and reputation for unparalleled customer service makes this an exciting platform investment,” added Phil Johnson, CCR President. “We look forward to executing a buy and build strategy to expand the company’s capabilities and accelerate growth.” About Palo Duro Capital Palo Duro Capital, LLC is a Dallas, Texas-based, lower middle-market private equity firm which works in partnership with business owners and management teams to acquire market-leading manufacturers of specialty chemicals, industrial products and commercial building products. The Palo Duro Capital operating partners bring decades of management experience in the focus industry segments and work collaboratively with management to facilitate long-term strategic growth. Palo Duro Capital has expertise in sourcing and executing complementary add-on acquisitions to supplement organic growth initiatives. For more information, please visit www.palodurocapital.com. Mario Toukan Bio Mario Toukan spent nearly 20 years as a chemical M&A banker and most recently was global head of chemicals, materials and packaging at KeyBanc Capital Markets. Since assuming the leadership role in 2012, Mario built the most active chemicals franchise on Wall Street advising on approximately $13.5 billion in transaction value representing 35 M&A transactions. Prior to KeyBanc, he was with Barclays Capital and affiliates, and Arthur Andersen. Mario graduated summa cum laude from the Fisher College of Business at the Ohio State University. In addition, he is a strategic investor and board member of VersaFlex (an industrial coatings business based in Kansas City, KS) and a board member of the Make A Wish Foundation. About CCR Specialty Chemicals CCR Specialty Chemicals, LLC, through its wholly-owned subsidiaries Crowley Chemical Company, LLC and Rusmar, Inc., has been a leading provider of formulated specialty chemical products for over 95 years. Crowley Chemical Company, LLC manufactures and distributes organic chemicals derived from petroleum derivatives and serves as a custom formulator of specialty aromatic oils for coatings adhesive and sealant applications. Rusmar Inc. manufacturers and distributed specialty foams and equipment for customers in solid waste, environmental remediation and mining industries. For more information, please visit www.crowleychemical.com and www.rusmarinc.com.