Arsenal Capital Partners has acquired IGM Resins, a supplier of intermediates used in the ultraviolet radiation cure coatings, inks and adhesives industry.
“We are delighted with the opportunity to invest in a global company with the ability to provide complete solutions to the highly attractive UV cure end markets. The acquisition of IGM Resins further builds on Arsenal’s broad portfolio and established expertise in the specialty chemicals and materials sectors,” said John Televantos, a Partner at Arsenal who co-heads the firm’s specialty industrials practice.
IGM Resins is a developer, manufacturer and supplier of products and technical services to the ultraviolet radiation cure coatings, inks and adhesives industry. UV technologies are used in numerous end markets, including printing, packaging, electronics and construction. IGM Resins has offices and production facilities in Europe, the U.S., South America and China. The company was founded in 1999 and is headquartered in the Netherlands (www.igmresins.com).
“We selected Arsenal as our partner for this business based on their industry and operating capabilities. We believe that they are uniquely capable of supporting our company’s growth in the fast growing UV coatings, inks and adhesives markets globally. This is a positive development for our customers, employees, suppliers and all of our other partners,” said John Huiberts, CEO and founder of IGM Resins who will maintain a minority interest and remain active in the company.
“We are pleased to be partnering with John and his team and we look forward to help accelerate the impressive growth trajectory of IGM and support the company through further identified strategic growth opportunities,” added Sal Gagliardo, an Operating Partner at Arsenal.
Arsenal Capital Partners makes investments in middle-market specialty industrial, healthcare and financial services companies with $50 million to $400 million in enterprise value. The firm invests in niche industry sectors where it has prior experience and where its operating resources can help facilitate incremental growth and margin improvement. Industries of specific interest include: specialty & fine chemicals; segments of healthcare; transportation and logistics; power generation; aerospace & defense; process industry components and services; and financial services. Arsenal currently has $800 million of committed equity capital and is based in New York, NY (www.arsenalcapital.com).
The acquisition of IGM is the fourth acquisition by Arsenal Capital in 2012, following the investments in Fluoro-Seal Holdings, Plasticolors Inc. and Evonik’s Colorants business. IGM joins Arsenal’s extensive portfolio of investments in the specialty industrials sector. The firm’s current investments in this sector include Chromaflo Technologies, the largest independent global pigment dispersion platform; Fluoro-Seal Holdings, a provider of plastic barrier, adhesion and surface enhancement products and services as well as manufacturer of value-added materials; Royal Adhesives & Sealants, a producer of adhesives, sealants and coatings. Previous investments in the sector include Novolyte Technologies, Genovique Specialties, Velsicol Chemical, Sermatech International, and Vertellus Specialties.
The Valence Group acted as financial advisor to IGM on this transaction. The Valence Group is a specialist investment bank offering M&A advisory services exclusively to companies and investors in the chemicals, materials and related sectors. The firm has offices in New York, London and Shanghai (www.valencegroup.com).
© 2012 PEPD • Private Equity’s Leading News Magazine • 9-25-12
