Hiram, Ohio – September 1, 2022 – In a strategic move highlighting their commitment to the specialty materials and chemicals sectors, private equity firms SK Capital Partners, LP (“SK Capital”) and Edgewater Capital Partners, LP (“Edgewater Capital Partners”) have announced their joint acquisition of Saint-Gobain’s Scintillation and Photonic Crystals business (“Saint-Gobain Crystals”). This acquisition, spearheaded by SK Capital with Edgewater Capital Partners as a significant minority shareholder and active board member, marks a pivotal moment for Saint-Gobain Crystals and underscores the expertise both firms bring to fostering growth in specialized industries.
Saint-Gobain Crystals, headquartered in Hiram, Ohio, is a globally recognized leader in the development and supply of single scintillation crystals used in radiation detection and sapphire and garnet substrates critical for photonics and power electronics applications. The company’s reputation is built on robust research and development capabilities, deep expertise in crystal growth, packaging, and integration, and a substantial intellectual property portfolio boasting 174 patents. This vertical integration, encompassing everything from crystal purification to electronics integration, positions Saint-Gobain Crystals as a uniquely valuable player in its market.
Mario Toukan, Managing Director at SK Capital, expressed enthusiasm about the partnership, stating, “We are incredibly excited to partner with the Saint-Gobain Crystals team as we embark on the next phase of the Company’s growth. Saint-Gobain Crystals is uniquely positioned in the market, leveraging leading R&D capabilities to solve customer-specific challenges with applied material science. Moving forward we will seek to build upon the Company’s stellar scientific foundation and reputation while establishing a leading independent market participant.”
Ryan Meany, Managing Partner of Edgewater Capital Partners, echoed this sentiment, emphasizing the firm’s specific contributions: “We are equally excited to partner with the strong management team at Saint-Gobain Crystals and support them as they build upon their technical achievements in critical applications. We have a great deal of respect for SK Capital and look forward to bringing Edgewater Capital Partners’ deep technical expertise to bear as a value-add equity partner in this investment.” This statement highlights the specific value proposition Edgewater Capital Partners brings to the table – leveraging their technical expertise to enhance the acquired company’s operations and growth trajectory.
Mike Cahill, Vice President of Saint-Gobain Crystals, also conveyed optimism about the new partnership. “We look forward to partnering with SK Capital and Edgewater Capital Partners to establish a leading independent company,” he stated. “SK Capital and Edgewater Capital Partners share our vision of enhancing the value and quality of Saint-Gobain Crystal’s product portfolio and commercial strategy. Given their deep experience in the markets in which the Company operates, coupled with both firms’ significant experience in executing corporate carve-outs, we are confident in their collective abilities to quickly add value.”
The collaboration between SK Capital, Edgewater Capital Partners, and Saint-Gobain is focused on ensuring a smooth transition that allows Saint-Gobain Crystals to maintain its high standards of service for its global clientele, employees, and stakeholders. The definitive agreement is expected to be finalized after customary employee consultations within Saint-Gobain, with the transaction’s completion anticipated before the end of the year, pending regulatory approvals.
This acquisition underscores Edgewater Capital Partners’ strategic focus on investing in performance materials businesses. As a sector-focused private equity firm, Edgewater Capital Partners, based in Cleveland, Ohio, brings over two decades of experience investing in niche manufacturers within specialty chemicals, life sciences, advanced materials, and engineered components. Their investment philosophy centers on providing not just capital, but also the strategic guidance and operational expertise needed to accelerate growth. Edgewater Capital Partners has consistently demonstrated an ability to understand and navigate the complexities inherent in these specialized businesses, making them a valuable partner in this acquisition.
About Edgewater Capital Partners
Edgewater Capital Partners, headquartered in Cleveland, Ohio, is a private equity firm dedicated to investing in lower, middle-market performance materials companies. The firm’s extensive track record demonstrates expertise in nurturing growth within specialty chemicals, life sciences, advanced materials, and engineered components sectors. Edgewater Capital Partners distinguishes itself through a deep understanding of the operational nuances and technological drivers within these industries, enabling them to effectively support portfolio companies in achieving and exceeding their growth potential. For more information, please visit www.edgewatercapital.com.
About SK Capital Partners
SK Capital Partners is a private investment firm with a disciplined approach to the specialty materials, specialty chemicals, and pharmaceuticals sectors. The firm is committed to building robust, growing businesses that generate significant long-term economic value. SK Capital leverages its industry-specific knowledge, operational resources, and investment acumen to identify and execute transformational opportunities, enhancing strategic positioning, growth, and profitability while mitigating operational risks. SK Capital’s portfolio companies collectively generate approximately $16 billion in annual revenue, employ over 20,000 individuals globally, and operate 203 plants across 32 countries. Currently, the firm manages approximately $6.6 billion in assets. Additional information is available at www.skcapitalpartners.com.
About Saint-Gobain Crystals
Saint-Gobain Crystals is a recognized technology leader in the development and application of synthetic crystals for radiation detection and measurement, as well as opto-mechanical products. The division encompasses Scintillation & Photonics Products businesses, including well-known brands like Bicron, Crismatec, and Harshaw. Saint-Gobain Crystals serves a diverse range of critical applications across medical imaging, security, aerospace and defense, and industrial markets, supported by a global network of production and sales facilities across the USA, France, India, China, and Japan. For further details, please visit www.crystals.saint-gobain.com.
