Rinchem Co. LLC

Overview Key strengths Key risks Higher barriers to entry in the warehousing and transportation of chemicals Small size and specialization limits scope compared to logistics peers Significant U.S. domestic investment in semiconductor manufacturing High customer and end-market concentration Warehousing offsets exposure to spot market transportation pricing Highly leveraged capital structure and sponsor ownership Although the company has not yet reported its full-year results for 2022, we expect revenues will grow significantly--by about 35% to 40%--supported by strong demand for the company's logistics services and elevated pricing for freight transportation. The company has benefited in recent years from increased demand for semiconductors and supply chain disruptions that led to a shortage of chips. Furthermore, strong demand and constrained capacity across trucking,

...We expect revenues will decline slightly in 2023 following strong growth in 2022. Although the company has not yet reported its full-year results for 2022, we expect revenues will grow significantly--by about 35% to 40%--supported by strong demand for the company's logistics services and elevated pricing for freight transportation. The company has benefited in recent years from increased demand for semiconductors and supply chain disruptions that led to a shortage of chips. Furthermore, strong demand and constrained capacity across trucking, ocean shipping, and air freight providers supported record-high pricing. However, while we anticipate utilization in the company's warehouses and chemical storage facilities will remain high, we expect a more normalized...

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