News & Press Releases

Micross Solutions
Insight Equity Partners with Dustex and Sparstane Technologies
November 10, 2014

SOUTHLAKE, Texas; KENNESAW, Georgia; and BIRMINGHAM, Alabama – November 10, 2014 – An affiliate of Insight Equity Holdings LLC (“Insight Equity”), the Southlake, Texas headquartered private equity firm, is pleased to announce its acquisition of Dustex Holdings LLC (“Dustex”), a holding company owned by affiliates of CEO Patrick Paul. Concurrent with the acquisition of Dustex by Insight Equity, Dustex has acquired Sparstane Technologies LLC (“Sparstane”).

Dustex, based in Kennesaw, Georgia, designs and manufactures innovative multi-pollutant air pollution control equipment and systems for the power generation, cement, steel, mining, petrochemical, and glass industries. Operating as a fully functional design, fabrication, and installation corporation, Dustex focuses on efficient and cost effective applications using its significant technical archives regarding air filtration, gas cooling and scrubbing systems.

Sparstane, based in Birmingham, Alabama, has developed a patented technology for the conversion of gypsum generated by flue-gas desulfurization in coal-fired power generation facilities into high value commodity materials, specifically nitrogen fertilizer and pure, recycled calcium carbonate.

The current Dustex and Sparstane management teams will continue to lead the two businesses, building on their track records of creating value for customers and shareholders. Insight Equity will hold the controlling interest in the combined entity, but Dustex and Sparstane management will maintain meaningful ownership positions as partners for future growth.

Victor Vescovo, COO and Managing Partner at Insight Equity and the newly-combined firm's Chairman, noted “We are very happy that we were able to bring these two companies together. The transactions will allow us to further build Dustex's pollution-control capabilities as well as bring to life the 'industrial venture capital'-like opportunity of Sparstane's exciting technology.”

“We, at Dustex, are elated to partner with Insight Equity and become an integral part of the commercialization of Sparstane’s innovative tech,” remarked Dustex CEO Patrick Paul. “Insight distinguished itself in the acquisition process both in their deep understanding of our business as well as the transformative potential they brought to the table in Sparstane.”

Taylor Pursell, Executive Vice President of Sparstane, added, “This new partnership will allow us to bring Dustex's significant engineering talent and organizational capabilities to bear on ensuring that Sparstane’s technologies can be scaled up to the industrial level. Dustex also provides a very strong platform for collaboration with our power-generation partners.”

Ben Stolbach, a Vice President at Insight Equity and the lead arranger of the transactions, further commented “We are looking forward to working closely with the Dustex management team to build on its strong position in multiple end-markets and help it achieve its growth potential, especially internationally. As for Sparstane, we believe we now have all the pieces in place to develop a compelling new technology that can turn what is currently a waste stream into valuable industrial commodities.”

SAMCO Capital Markets, Inc. served as the exclusive financial advisor to Dustex on the transaction.

About Dustex

Dustex designs, engineers, and manufactures multi-pollutant air pollution control (APC) equipment and systems. Founded in 1947 and holding over 20 patents in the APC industry, Dustex is based in Kennesaw, GA with a 50,000 square foot fabrication location in North Carolina. The Company has an additional captive fabrication facility in the central US which is dedicated to Dustex Projects as well as a licensed and approved fabrication facility in Istanbul, Turkey. Dustex’s portfolio provides solutions for Particulate Matter, SOx, Mercury and NOx control, utilizing: Circulating Dry Scrubbers (CDS/CFB), Activated Carbon Injection (ACI) Systems, Dry Sorbent Injection (DSI) Systems, Selective Catalytic Reduction/Selective Non-Catalytic Reduction (SCR/SNCR), Fabric Filters, Baghouses, Cartridge Collectors, Nuisance Collectors, Heat Exchangers, Cyclones and Multi-clones.

About Sparstane

Sparstane founded in 2013, partners with coal fired utilities to convert waste streams to beneficial use products. The Sparstane patented technology produces nitrogen fertilizers used in agriculture and high quality recycled calcium carbonates that are widely used in consumer products and building materials.

About Insight Equity

Insight Equity makes controlling investments in strategically viable, middle market, asset intensive companies across a wide range of industries. Insight Equity specializes in partnering with companies in complex and challenging situations, including corporate divestitures, aggressive growth opportunities, restructurings, and transitions from private family ownership. The firm leverages a proven, collaborative value creation model to facilitate operating enhancements and growth. Insight Equity’s headquarters is located near the Dallas / Ft. Worth International Airport in Southlake, Texas. The firm also has an office in New York City.