12/09/2011: Lewis Chemical expects near-term suitor attention, would need compelling offer to sell now – CEO

12/09/2011: Lewis Chemical expects near-term suitor attention, would need compelling offer to sell now – CEO

The Lewis Chemical Company, a private business based in Rome, Georgia, is likely to attract more interest from would-be buyers given its growth trend, said Gregg Lewis, owner and CEO.

The company has stayed largely “under the radar” since its founding in 2006, Lewis said, noting that its products typically have been sold to and through resellers and distributors with those other companies’ names on the labels. Recent growth is likely to bring more suitor interest, however, Lewis added. Inc. magazine ranked Lewis Chemical the 19th fastest growing manufacturing company in the US, climbing to USD 8.4m revenue in 2010 from USD 1.6m in 2007.

“If someone was looking to pick up a small surfactant company, there could be some interesting discussions to have,” he remarked.

Lewis, sole owner of the business, said he is interested in talking with suitors and their advisors, although he would need a “very compelling” offer to sell in the midst of the company’s ongoing fast growth. He is not interested in hearing from sell-side advisors wishing to market his company, he said.

“It doesn’t seem prudent to do something too quickly,” the CEO said. The business expects revenue of USD 12m to 13m this year and then could grow to USD 20m within a year or two, he added.

Lewis and his wife, who both hold PhDs in chemistry, founded the company after prior careers in the industry, including both working for Dow Chemical. Although he did not specify companies that might find Lewis Chemical attractive, he suggested BASF and Rhodia each have a history of acquiring mid-size chemical companies.

Lewis Chemical makes surfactants, including some eco-friendly alternatives, which are used in the manufacture of detergents and emulsifiers such as dish soap. The CEO attributed the company’s fast growth, in part, to its willingness to innovate and customize chemicals to meet customers’ specifications.

By Chris Marr in Atlanta

Source Proprietary Intelligence

Value GBP 8m (projected 2011 revenue, Lewis Chemical)

Stake Value more than 30% inclusive