Sovereign was founded in 1996 by WCP and a well-known senior industry executive to acquire specialty chemical businesses in the highly-fragmented adhesives, sealants and coatings industries. By focusing on niche products in attractive markets, Sovereign quickly grew to more than $350 million in revenues. The company achieved substantial operational savings through on-site management, reorganization/cost improvements, focused research and development and technical service. In January of 2000, Sovereign was recapitalized in a $360 million transaction. At that time, Waud Capital Partners sold a significant portion of its interests but retained 20% of its investment in the newly recapitalized company. In December 2004, Sovereign was sold to Henkel Corporation for a transaction value of approximately $575 million.