DALLAS, TX – June 7, 2023 — Tailwater Capital, LLC (“Tailwater”) today announced that it has closed on the sale of Saconix LLC (“Saconix”), a subsidiary of Copperbeck Energy Partners LLC (“Copperbeck”), to Sumitomo Corporation of Americas (“Sumitomo”).
In 2017, Tailwater and Copperbeck, a portfolio company of Tailwater, identified and executed a management-led carveout of Saconix from a privately held midstream energy company. Saconix represented a high-potential distribution and logistics concern specializing in the transportation, storage and marketing of sulfuric acid in the United States.
Over the past five years, Saconix has grown its customer and end-market user bases while expanding its geographic footprint and distribution capabilities. This includes adding significant infrastructure in strategic locations to service the domestic mining sector. Sulfuric acid is a critical raw material used in the extraction and production of metals critical to the energy transition, including copper and lithium. The platform delivered consistent results and growth through multiple cycles, including periods of extreme macroeconomic volatility caused by the COVID-19 pandemic and the subsequent inflationary commodity price environment.
“The sale of Saconix represents a successful partnership between Tailwater and Copperbeck to identify and transform a U.S. Gulf Coast-centric logistics business into a market-leader across the North American sulfuric acid distribution space,” said Edward Herring, Co-Founder and Managing Partner of Tailwater Capital. “Copperbeck’s leadership of Saconix is a testament to this team’s capabilities to develop and execute on a defined growth strategy focused on critical assets and infrastructure to support our transition towards a low-carbon economy.”
Under Copperbeck’s ownership, Saconix organically grew its business through capital efficient investment in strategically located assets with a focus on supply chain optimization and deep customer and supplier relationships built on safe operations and superior customer service. Today, Saconix serves over 80 customers under decades-long relationships across a variety of industrial end-markets and sources product globally from more than 35 suppliers in 15 different countries.
“Copperbeck is extremely proud of the results achieved by Saconix and its employees over the last five years,” said Wes Martin, CEO of Copperbeck. It was an honor and privilege to work with such a fantastic group of professionals who embraced a collaborative approach in growing the business under Copperbeck and Tailwater’s leadership. I am excited for the future of Saconix and its employees as they join Sumitomo – a world-class organization with shared values, vision and mission.”
RBC Capital Markets, LLC acted as exclusive financial advisor to Copperbeck. Sidley Austin LLP served as legal counsel to Tailwater and Copperbeck in connection with the transaction.
About Copperbeck Energy Partners
Founded in August 2017, Dallas-based Copperbeck Energy Partners focuses on providing value-added logistical and distribution solutions within the inorganic chemical and downstream adjacent industries. Copperbeck owns Dallas-based NexChlor LLC, a platform which leverages unique supply, transportation and delivery of chlor-alkali products, including hydrochloric acid and caustic soda, throughout the United States. Copperbeck is a portfolio company of Tailwater Capital, LLC. For more information, please visit https://www.copperbeck.com.
About Tailwater Capital
Dallas-based Tailwater Capital is an energy and growth infrastructure private equity firm with a well-established track record of working constructively with proven management teams to deliver value-added solutions. Tailwater has raised more than $4.4 billion in committed capital since inception and the team has executed more than 100 transactions representing over $23 billion in value. For more information, please visit www.tailwatercapital.com.
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Includes non-Tailwater controlled capital pursuant to the Tailwater led management buyout processes for which Tailwater provides management related services.