Iron Path Capital-backed PureTech Scientific: A Leader in Glycolic Acid Business Acquisition

PureTech Scientific LLC, backed by Iron Path Capital, has successfully completed its acquisition of the Glycolic Acid business from The Chemours Company for $137 million in cash. This acquisition positions PureTech Scientific as a global leader in the organic synthesis of ultra-high purity alpha hydroxy acids, catering to the Life Sciences and Specialty Chemical industries. The acquisition includes a proprietary continuous-production manufacturing process, a superior product, established distribution channels, cutting-edge technology, and a diverse range of end-use applications.

Glycolic acid, a naturally occurring compound found in various plants and fruits, serves as a natural preservative and protector. However, extracting it economically from natural sources is not feasible due to their low concentrations. PureTech Scientific produces a nature-identical synthetic glycolic acid that is readily biodegradable and serves as a critical component in a variety of industries and applications, including pharmaceuticals, personal care products, clean & disinfect, oil & gas, and electronics.

Iron Path Capital Co-Founder and Managing Partner Scott Mraz expressed enthusiasm about the acquisition, stating that the Glycolic Acid carve-out from The Chemours Company aligns perfectly with PureTech Scientific's objectives. Mraz highlighted the exceptional team, continuous-production manufacturing process, superior product, stellar reputation with customers, established distribution channels, cutting-edge technology, and diverse range of end-use applications as factors that make this acquisition extremely promising. He emphasized that PureTech Scientific is well-prepared to drive end-market growth through consistent investments in product innovation, high-quality customer support, and comprehensive organic and transformative growth strategies.

Meanwhile, Rob Reistetter, Co-founder and Managing Partner at Iron Path Capital, believes that the creation of a standalone operating company dedicated to safety, integrity, continuous improvement, collective entrepreneurship, technical support, and strong research and development will bring substantial value to PureTech Scientific customers and the market as a whole.

The leadership team at PureTech Scientific comprises individuals with extensive experience in the manufacture of Glycolic Acid and high-purity products. James Kanicky, Business Manager of the Glycolic Acid division and a veteran with over 20 years of industrial/specialty chemical experience, will serve as CEO/President. Other key members include Reginald Malmberg as CFO, Jeff Horsager as EVP Business Development and Marketing, Ashley Rine as VP of Operations, and Chandler Lee as Global Sales Director. Together, they bring a combined experience of over 125 years to the table.

Looking ahead, Kanicky promises a continued focus on detail, quality, and an uninterrupted supply of glycolic acid products under the PureTech Scientific brand. He expressed excitement about the opportunities that PureTech Scientific's infusion of technical expertise and resources will bring, supporting new customer-centered product applications, formulations, and manufacturing capabilities.

PureTech Scientific's glycolic acid solutions portfolio includes Glypure®, a high-purity glycolic acid used in personal care products like anti-aging and wrinkle removal serums, exfoliation peels, moisturizers, and acne treatments. Additionally, Glypure® GL offers the benefits of AHA to rejuvenate skin more effectively and efficiently with reduced free acid and lower skin irritation. Glypure® PGA, with its low impurity levels, is suitable for manufacturing PGA for the biodegradable plastics market. Glyclean®, a technical-grade glycolic acid, is crucial in electronics, surface cleaners, semiconductors, and other industrial processing applications. Lastly, Glyclean® D is an environmentally friendlier solution for the Clean and Disinfect market.

Iron Path Capital has sought financial advisory services from FORVIS, LLP, and legal advisory services from McDermott Will & Emery.

About PureTech Scientific LLC:

Based in Belle, West Virginia, PureTech Scientific is a global leader and the sole manufacturer in the Americas in the organic synthesis of ultra-high purity alpha hydroxy acids. With over 85 years of operating experience, PureTech Scientific is committed to reducing its carbon footprint while delivering world-class products, innovations, and customer support for a healthier and safer world.

About Iron Path Capital:

Iron Path Capital, founded by Rob Reistetter and Scott Mraz, is a private equity firm specializing in building exceptional businesses in the healthcare and specialty industrials sectors. With offices in Nashville, TN, and Charlottesville, VA, Iron Path Capital provides strategic leadership, operational expertise, and flexible capital to support management teams in achieving visionary growth plans.

In summary, PureTech Scientific's acquisition of the Glycolic Acid business from The Chemours Company under the backing of Iron Path Capital positions the company as a global leader in the organic synthesis of ultra-high purity alpha hydroxy acids. With a commitment to innovation, customer support, and sustainable growth, PureTech Scientific is set to make a significant impact in the Life Sciences and Specialty Chemical industries.