Osmose Holdings, the maker of oil-based wood preservatives, has been sold to Oaktree Capital Management, a Los Angeles investment fund. Terms were not disclosed.
James Spengler, president and CEO of Osmose, will remain in place, as will his management team.
The 78-year-old company on Ellicott Street at Best has evolved from creating preservatives for railroad ties into making other services for the lumber and utility industries.
Here is a press release about the deal:
Osmose Holdings, Inc. Acquired by Oaktree Capital Management, L.P.
BUFFALO, N.Y.--(BUSINESS WIRE)--Osmose Holdings, Inc., (Osmose) a diversified global manufacturer of wood preservation chemistry and technology and a specialty service provider to the utilities and railroad industries, announced that it has closed an agreement to be acquired by certain investment funds managed by Oaktree Capital Management, L.P. of Los Angeles, California.
James Spengler, President and CEO of Osmose, will continue to serve in the same capacity along with Osmose’s existing management team. “Osmose has built very strong brand recognition and a solid reputation for innovative products and services, excellent customer service, best in class safety performance and good growth prospects across all its business segments which attracted Oaktree to seek a partnership with management to pursue strategic growth plans. Oaktree can provide substantial additional resources and is committed to investing in Osmose to help us expand our product and service offerings and to better meet and exceed our customers’ expectations” said Spengler.
Ian Schapiro, Managing Director of Oaktree’s GFI Energy Group, said “We are delighted to have the opportunity to invest in Osmose and to provide the Company with additional resources and capabilities to expand its product and service offerings, invest in additional research and development, and deliver superior customer service. We look forward to working with Osmose’s world-class management team to continue to build on the Company’s success.”
Osmose was advised in this transaction by Western Reserve Partners LLC.
Financial terms were not announced.
Osmose Holdings, Inc. is a Buffalo, NY based 78 year old private company that started with patented wood preservation chemistry and evolved into a dominant provider of scores of innovative technologies and services that benefit the lumber treatment, utilities and railroad industries in the U.S. and around the world. For additional information, please visit www.osmose.com.
Oaktree is a leading global investment management firm focused on alternative markets, with $77.9 billion in assets under management as of March 31, 2012. The Oaktree funds investing in Osmose include Oaktree Power Opportunities Fund III, L.P. and Oaktree Principal Fund V, L.P. The Power Opportunities Fund focuses exclusively on providing capital to leading businesses in the energy and utilities industry, while the Principal Fund brings resources and experience investing in a variety of industrial services and product markets including rail services, building products, and specialty chemicals. Headquartered in Los Angeles, Oaktree has over 650 employees and offices in 13 cities worldwide. For additional information, please visit Oaktree’s website at www.oaktreecapital.com.
Headquartered in Cleveland, Ohio, Western Reserve Partners LLC provides M&A, capital raising and other financial advisory services to middle market companies across a variety of industry verticals. For additional information, please visit www.wesrespartners.com.