Basic Resources, Inc. is now Avkem International. The new company is the result of a recapitalization transaction with Deer Creek Holdings, a private equity firm. This will allow non-active shareholders to generate liquidity for their personal estates and creates a strong foundation for continued growth and development of the company. David Youngblood, and Chief Operating Officer, Laurence Secrest, will continue in their roles and will have significant ownership in the new Company.
David Youngblood remarked that, “This begins an exciting new era for our employees, customers and suppliers. Our current shareholders have been great partners and stewards of the business since its founding in 1992. But as with any entrepreneur founded business, there comes a time when a transition can help a business reach the next level. To our founders’ credit, they have helped us find a unique partner that can support and enhance our plan for growth and development. Unlike most private equity firms that focus on four to five year investment period, Deer Creek offers the much longer term, patient investment philosophy of a family holding company. This philosophy fits perfectly with our company and employees. Our new company will also greatly benefit customers and suppliers. With this new partnership we will have the resources and tools to exceed the needs and expectations of our business partners.”
Commenting on the investment, Paul Wolf, Managing Director at Deer Creek stated, “We are very excited about our new relationship with David, Laurence and the entire team at Basic Resources. This company has all of the fundamental characteristics that we look for in a business: a history of strong growth, outstanding management, a leadership position in the markets it serves, and a reputation for quality. We look forward to supporting the company as it looks to expand further both organically and through acquisition. The new company name, Avkem International is intended to highlight the strengths and future growth of the Company as a premier advanced specialty chemical producer.”
Avkem leadership will also be augmented with the addition of Maurice Murphy as an Operating Partner and Chairman of Avkem’s Board of Directors. Mr. Murphy is an accomplished executive with extensive experience as Chief Executive of multiple international industrial businesses.