Windjammer Capital Acquires Specialty Chemicals Manufacturer MFG Chemical from Platte River Equity

The specialty chemicals sector closed out 2025 with another private equity transition, as Windjammer Capital acquired MFG Chemical from Platte River Equity in a deal that closed on December 31, 2025. While financial terms were not disclosed, the transaction represents a strategic step-up for the Chattanooga, Tennessee-based manufacturer, moving from a lower middle-market sponsor to a firm with significantly deeper resources and a proven track record in scaling industrial businesses.

Founded in 1980, MFG Chemical has built its reputation on technical precision and customer intimacy over more than four decades. The company specializes in complex and customized chemical solutions for water treatment and industrial coatings, two segments experiencing sustained demand driven by infrastructure investment, environmental regulations, and industrial modernization.

What distinguishes MFG in an increasingly commoditized chemicals landscape is its focus on bespoke formulations. The company's technical formulation expertise, flexible manufacturing capabilities, and long-standing customer relationships have enabled it to serve clients requiring specialized solutions that larger, volume-focused chemical producers often cannot economically deliver. This positioning in niche applications with high switching costs has created a defensible competitive moat—precisely the type of business model that attracts sophisticated private equity buyers.

The water treatment chemicals market, one of MFG's core segments, has become particularly attractive as municipalities and industrial facilities face mounting pressure to upgrade aging infrastructure and meet stricter environmental standards. Industrial coatings, meanwhile, benefit from ongoing manufacturing activity and the need for protective and functional coatings across diverse applications from automotive to aerospace.

For Windjammer Capital, the MFG acquisition fits squarely within its established investment thesis. Founded in 2006 and based in Denver, Colorado, Platte River Equity focuses on investments in established lower middle market operating companies with enterprise values of up to $250 million, while Windjammer operates at a different scale entirely.

The buyer brings substantial resources to the table, with a track record spanning more than three decades in middle-market industrial investing. Windjammer's strategy centers on partnering with what Rob Quandt, Managing Director at Windjammer Capital, describes as "engineering and material science driven niche market leaders that provide mission-critical products and services". The firm's experience in operational improvement and buy-and-build strategies suggests MFG may serve as a platform for consolidation in the fragmented specialty chemicals sector.

"The Company's differentiated formulation capabilities and strong customer relationships provide a solid foundation for long-term growth," Quandt noted in announcing the transaction.

Paul Turgeon, Chief Executive Officer of MFG, expressed enthusiasm about the transition: "We have valued our partnership with Platte River and are now excited to partner with Windjammer as we build on MFG's more than four decades of history. Windjammer's experience scaling industrial manufacturing businesses and their collaborative approach make them an ideal partner as we continue to invest in our people, expand our capabilities, and serve our customers".

The transaction occurs against a backdrop of steady growth in the global specialty chemicals industry. The market is expected to grow at a CAGR of 5% through 2030, with the sector valued at $381.08 billion in 2024 and projected to reach approximately $510.68 billion by the end of the decade.

This consistent expansion reflects several structural drivers: increasing regulatory requirements for water quality and treatment, ongoing industrial production requiring specialized coatings and chemicals, and the shift toward higher-value, application-specific formulations that command premium pricing. For a company like MFG with deep technical expertise in these areas, the market dynamics are favorable.

The specialty chemicals sector has also proven relatively resilient compared to commodity chemicals, which face greater cyclicality and pricing pressure. Companies focused on customized solutions and technical service—MFG's core competencies—typically enjoy stronger margins and more stable customer relationships than their commodity-focused counterparts.

The deal brought together a roster of prominent advisors on both sides. Grace Matthews and KeyBanc Capital Markets acted as financial advisors to Platte River, with Bartlit Beck providing legal counsel. On the buy side, Piper Sandler & Co served as exclusive financial advisor to Windjammer, with Kirkland & Ellis handling legal matters.

The involvement of multiple financial advisors on the sell side—Grace Matthews, a boutique known for middle-market industrial deals, alongside KeyBanc Capital Markets—suggests a competitive process that likely generated interest from multiple potential buyers. Kirkland & Ellis's representation of Windjammer, meanwhile, reflects the firm's dominant position in private equity M&A, particularly for middle-market transactions.

The transaction represents a textbook example of private equity's tiered ecosystem at work. Platte River Equity, which targets companies with enterprise values up to $250 million, provided MFG with the capital and operational support to strengthen its foundation during its ownership period. Kris Whalen, Managing Director at Platte River Equity, reflected on the partnership: "We are proud of what we have accomplished alongside the MFG team, and we are thankful for the opportunity to have worked with them. We wish both Windjammer and MFG great success in their next chapter together".

Now, with Windjammer's deeper resources and broader platform capabilities, MFG is positioned for its next phase of growth. This likely includes organic expansion through product development and market penetration, as well as potential add-on acquisitions to broaden the company's geographic reach or technical capabilities.

The specialty chemicals sector remains highly fragmented, with numerous small and mid-sized players serving regional markets or specific niches. This fragmentation creates opportunities for well-capitalized platforms to pursue roll-up strategies, consolidating market share and achieving operational efficiencies through scale.

While Windjammer has not disclosed specific financial targets or acquisition plans, the firm's historical approach to industrial manufacturing investments provides clues about MFG's likely trajectory. According to the announcement, Windjammer's investment will support MFG's continued growth through investments in operational excellence, product development to expand its portfolio and end-market reach, and strategic acquisitions.

Operational Excellence: This typically involves implementing best practices in manufacturing efficiency, supply chain optimization, and quality management systems. For a specialty chemicals manufacturer, this could mean reducing batch cycle times, improving yield rates, and enhancing quality control processes to minimize waste and rework.

Product Development: Expanding MFG's formulation portfolio to address adjacent applications or emerging customer needs could unlock new revenue streams. This might include developing environmentally friendly formulations in response to sustainability trends, or creating specialized products for high-growth industrial segments.

Strategic Acquisitions: The fragmented nature of specialty chemicals makes this sector ripe for consolidation. MFG could serve as a platform for acquiring complementary businesses with similar technical capabilities, adjacent product lines, or presence in new geographic markets. Such a strategy would leverage Windjammer's experience completing more than 50 platform acquisitions and over 100 add-on transactions since its founding.

The MFG transaction reflects several broader trends in specialty chemicals M&A. First, private equity continues to view the sector favorably, attracted by its relative stability, recurring revenue characteristics, and opportunities for operational improvement. Second, secondary buyouts—where one private equity firm sells to another—remain common in the middle market, as companies outgrow their initial sponsors' investment mandates.

Third, the focus on niche, technically differentiated businesses over commodity producers underscores the market's preference for companies with defensible competitive positions. In an era of economic uncertainty and potential margin pressure, businesses like MFG that serve mission-critical applications with customized solutions offer more predictable cash flows than volume-driven commodity players.

The undisclosed transaction terms are typical for private middle-market deals, though the involvement of multiple advisors and the competitive tension they likely generated suggests Platte River achieved a favorable outcome for its limited partners. For Windjammer, the acquisition represents an opportunity to deploy capital into a proven business with clear growth levers and favorable market dynamics.

As MFG Chemical embarks on its next chapter under Windjammer's ownership, the company's 45-year foundation in specialty formulations positions it well to capitalize on favorable industry trends. The combination of technical expertise, established customer relationships, and new resources for growth investments creates a platform with significant potential.

For the specialty chemicals sector more broadly, the transaction signals continued private equity interest in niche manufacturers with differentiated capabilities. As the industry evolves toward higher-value, application-specific solutions, companies like MFG that excel in technical formulation and customer service are likely to remain attractive targets.

The year-end timing of the deal's closing also suggests both parties were motivated to complete the transaction before 2026, potentially to optimize tax treatment or meet fund-level timing objectives. Regardless of the specific motivations, the deal adds another data point to what has been a robust M&A environment for specialty chemicals, even as broader economic conditions remain uncertain.

With Windjammer's operational expertise and capital resources now behind it, MFG Chemical appears well-positioned to expand its market presence, enhance its product portfolio, and potentially serve as a consolidation platform in the fragmented specialty chemicals landscape. The coming years will reveal whether this partnership can deliver on the growth ambitions both parties have articulated.