DICKSON, TENNESSEE —Zinc Oxide LLC has announced the acquisition of Zochem, a subsidiary of American Zinc Recycling LLC . Headquarters will reside at the Zinc Oxide LLC Dickson TN facility.
In 2017, the combined companies will generate sales of approximately $250 million (US), and are approved suppliers at 88% of the total North American zinc oxide market volume. Founded in 1933, Zochem has been located in Brampton, Ontario since 1974. Led by a team of industry veterans, Zinc Oxide LLC began in 2013 and has rapidly established itself as a major player in the market. The acquisition includes all of Zochem’s manufacturing operations and product lines. Both the Brampton and Dickson facilities will continue to manufacture with the French Process method exclusively, as this method produces zinc oxide with the most consistent quality and highest purity. Zochem’s extensive domestic and global distribution network will also remain in place.
Russ Robinson, CEO of Zinc Oxide LLC, commented that, “the combination of Zinc Oxide LLC and Zochem has been a long-term goal of our ownership and management. Our team has long admired Zochem for its market breadth, operations and management capabilities.”
According to Senior Vice President of Sales and Marketing, Ed Smith, Zinc Oxide LLC, “The acquisition of Zochem demonstrates our commitment to being the leading zinc oxide supplier in North America. This move will benefit customers by ensuring a stable source for any grade of the highest-quality zinc oxide. In addition, many customers will benefit from reduced shipping costs and transit times, as approximately 80% of the North American zinc oxide market is within a 500 mile radius of our two plants.” Smith continued, “Our team is very charged up about working with our new colleagues at Zochem. The combination of personnel, expanded sales network and facilities gives us the best of the best. With our added depth of capabilities and global reach, the new company has tremendous growth opportunities.”
KeyBanc Capital Markets served as an advisor to Zinc Oxide LLC on this transaction.