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Petroleum

Castle Harlan Announces Sale of INDSPEC Chemical to Occidental Petroleum for $300 Million

Strategic Insights

— 2 min read

Castle Harlan, a New York merchant bank, has announced the sale of its shares in INDSPEC Chemical Corporation to Occidental Petroleum Corp. in a transaction valued at $300 million. This deal marks the firm's sixth major sale this year, bringing the total value of companies sold to $1.1 billion. INDSPEC's management and employees will retain a significant ownership position in the company. The investment partnership, Castle Harlan Partners II, L.P., acquired INDSPEC in 1993 and will see a five-fold return on its two-year investment.

Key Takeaways:

  • Castle Harlan, a New York merchant bank, has sold its shares in INDSPEC Chemical Corporation to Occidental Petroleum Corp. for $300 million.
  • The deal marks the firm's sixth major sale this year, bringing the total value of companies sold to $1.1 billion.
  • INDSPEC's management and employees will retain a significant ownership position in the company.
  • The investment partnership, Castle Harlan Partners II, L.P., acquired INDSPEC in December 1993.
  • INDSPEC is a specialty chemical company and the world's leading producer of resorcinol.
  • The transaction is expected to result in a five-fold return on Castle Harlan's two-year investment.
  • Castle Harlan has a history of successful sales, including the sale of Delaware Management Company to Lincoln National Corporation for $540 million and the sale of Truck Components to Johnstown America Industries for $250 million.
  • Jeffrey Siegal, a managing director at Castle Harlan, stated that the deal is "an outstanding transaction for the company and its shareholders."
  • Castle Harlan was established in 1987 and is headed by John K. Castle and Leonard M. Harlan.

Statistics:

  • The deal is valued at $300 million.
  • The total value of companies sold by Castle Harlan this year is $1.1 billion.
  • Castle Harlan has seen a five-fold return on its two-year investment in INDSPEC.
  • The investment partnership, Castle Harlan Partners II, L.P., was formed in 1993 with $254 million raised from corporate and public pension funds, university endowments, foundations, and individuals.
  • Castle Harlan has sold several successful companies, including:

+ Delaware Management Company: sold to Lincoln National Corporation for $540 million.

+ Truck Components: sold to Johnstown America Industries for $250 million.

+ Homestead National Corporation: acquired by Castle Harlan Partners II for $60 million.

  • Castle Harlan has a history of delivering strong returns, including a compounded average annual return of over 30 percent over seven years.

Sources:

  • "Castle Harlan Announces Sale of INDSPEC Chemical to Occidental Petroleum for $300 Million." PRNewswire, 10 Nov. 1995.
  • "Castle Harlan Sells Delaware Management Company to Lincoln National Corporation." PRNewswire, 10 Apr. 1995.
  • "Castle Harlan Sells Truck Components to Johnstown America Industries." PRNewswire, 8 Aug. 1995.

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