Pioneering Solvent Technology Company 1315

April 29, 2025
by an intermediary from Bucknell University in Santa Monica, CA, USA
Solvent Development Company: This premier Canadian R&D company is at the forefront of the solvent industry, specializing in the development and production of VOC-compliant, HAPs-free solvents. By pioneering a portfolio of 5 proprietary intellectual properties (IPs), the company offers healthier and more economical alternatives to traditional organic solvents. Its innovative solutions significantly reduce costs associated with storage, transportation, hazardous waste disposal, and insurance, enhancing both environmental safety and corporate profitability. Noteworthy Clients Sherwin Williams, Benjamin Moore, Embraer, Terra Firma.
The company is headquartered in Ontario, Canada with outsourced manufacturing in the U.S. 95 percent of sales are generated in the United States. In 2025, New Co is set to become an independent entity, strategically positioned to maximize the potential of our industry-leading solvent technologies. Simultaneously, the company has engaged investment bankers to spearhead our expansion efforts across North America and delve into other crucial strategic markets, aiming to significantly broaden our market presence and enhance its market share. The company also plans to scale up production and expand its proprietary solvent technology within CASE (coatings, adhesives, sealants, and elastomers) industry.
The company has invested $3,400,000 to date including $350,000 recently allocated to restructuring and strategic initiatives. The company is open to exploring flexible and creative acquisition, investment, and financing structures, but requires a minimum transfer of 50% ownership. The current owners agree to reinvest 20% of any proceeds from the sale into growth initiatives.
2025 Projections: Solvent Development Company = $1,650,000 Revenue / 17% EBITDA
Strategic Buyer Expectations: 5x-10x results [There is enough pipeline for $18M in annual EBITDA.]
The company is also open to discussing / including ownership in its American manufacturing subsidiary (located in Iowa) as part of a larger transaction.
NDA is required to secure the comprehensive Confidential Information Memorandum (CIM) crafted by ProNova Partners.
Facilities: Headquarters in Ontario Canada, with operational facilities Iowa USA, and BC Canada. Supported by a robust network of external distributors. Manufacturing facility potentially included in sale is located near Dubuque, Iowa.
Competition: Main competitors include Vertec Biosolvents, Elevance Renewable Sciences, Solvay Group, Cargill Bioindustrial, and GreenChem Industries.
Growth & Expansion: Tremendous opportunity to grow in N.A. and other strategic markets. Company already has plans to scale up production and expand its proprietary solvent technology within the CASE (coatings, adhesives, sealants, and elastomer) industry.
Financing: Open to exploring flexible and creative acquisition, investment, and financing structures.
Reason for Selling: The parent company is refocusing on its core businesses, enabling the Environmental Industrial Division to thrive under new leadership and direction.