Family Business Recapitalization

Tomah Holdings, Inc. – 2003 to 2006

Company History

Tomah is a market leader in the development, manufacture and marketing of a variety of niche specialty chemicals.  The company’s chemicals are sold primarily to other chemical companies for use in the manufacture of cleaners and other industrial products.  These chemicals represent a critical component found in products across a broad range of end-user applications, including industrial and institutional cleaning products, fuel additives, lubrication products and other applications. 

The CEO of Tomah approached Seidler Equity Partners in mid-2003 with a desire to complete a recapitalization transaction that would enable the company to repurchase shares from an outside shareholder and increase the ownership of key management and family shareholders.

Transaction Description

Seidler Equity Partners made a minority equity investment in Tomah to facilitate:

• The buyout of an outside shareholder.
• An increase in the equity ownership for family and management shareholders.
• An equity incentive program for management.

Post Transaction Highlights

Since the transaction, Tomah grew sales and earnings while increasing its market share in key strategic product lines.  The company was also successful in introducing a number of new products that have gained market acceptance in both domestic and international markets. Tomah was sold to Air Products & Chemicals, Inc. (NYSE: APD)  in 2006.