Archives for April 15, 2016

Arsenal Buys Peterson Chemical Technology

by

Arsenal Capital Partners has acquired polyurethane foam company Peterson Chemical Technology, a manufacturer and distributor of foam additives and specialty polyols used for the development of viscoelastic foam (“memory foam”). Polyols are generally used to produce other polymers and are reacted with materials to make polyurethanes used to make mattresses, foam insulation for appliances, and automotive seating.

Peterson Chemical will remain as an independent company within Arsenal’s Elite Comfort Solutions platform and operate as a separate business. Bruce Peterson, President of Peterson Chemical, will continue to oversee the company. “This transaction with Elite Comfort Solutions will enable Peterson Chemical to grow and expand its portfolio of technologies by accelerating investment in capacity, research and development capabilities, and talent,” said Mr. Peterson.

Arsenal has been very active lately in the polyurethane foam industry. In late March, Arsenal acquired Elite Foam and signed an agreement to acquire the foam production assets of Hickory Springs Manufacturing Company (HSM Foam). These transactions follow the firm’s acquisition earlier in March of Pacific Urethanes, a developer and seller of polyurethane foam products.  Once the buy of HSM Foam is completed, all three of these companies will operate as part of Arsenal’s specialty foam platform company, Elite Comfort Solutions.

“Peterson Chemical has been a leading innovator in the polyurethane foam sector and we are delighted to support Bruce and his team with greater focus on future innovations. Our intent with Elite Comfort Solutions is to commercialize new products more effectively around the world for the benefit of the bedding industry and the broader polyurethane market,” said John Televantos, a Partner at Arsenal and Co-Head of the firm’s Specialty Industrials Group.

Arsenal Capital Partners invests in middle-market specialty industrial and healthcare companies that have $50 million to $250 million in enterprise value.  Industries of specific interest include specialty and fine chemicals; segments of healthcare; transportation and logistics; power generation; aerospace and defense; and process industry components and services.  Arsenal has $1.7 billion of committed capital under management. The firm was founded in 2000 and has offices in New York and Shanghai (www.arsenalcapital.com).

Peterson Chemical is based in Fort Smith, AR (www.petersonchemicals.com).

© 2016 Private Equity Professional • Private Equity’s Leading News Magazine • 4-15-16

Bernhard Capital Acquires Dexter Field Services

by

ATC Group Services, a portfolio company of Bernhard Capital Partners, has acquired Dexter Field Services. Bernhard and a group of co-investors acquired ATC in November 2015 from Cardno Limited, a Brisbane, Australia-based infrastructure and environmental services company.

Dexter Field Services is a provider of leak detection and repair, monitoring, and other technical environmental services to a range of industrial companies. The specific activities of the company include environmental monitoring and analysis of piping components, cooling towers, wastewater drain systems, groundwater wells, and storage tanks. Dexter, founded in 2005, has approximately 150 employees and is headquartered in Austin (www.dexterfs.com).

With the closing of the transaction, the company has been renamed Dexter ATC Field Services and will continue to be led by its current CEO, Brett Kriley. “ATC is one of the leading multi-disciplinary environmental firms, and we look forward to joining their team. Dexter has achieved strong growth since its founding in 2005 and under ATC’s ownership, I am confident that we will continue to deliver the best-in-class leak detection, repair and environmental services to our clients.”

ATC provides environmental consulting, industrial hygiene, geotechnical engineering, government services and construction-materials testing and special inspection. The company has 70 locations throughout the United States and employs more than 1,350. ATC was founded in 1982 and is headquartered west of Baton Rouge in Lafayette, LA (www.atcgroupservices.com).

“Dexter’s track record, industry experience and well-respected brand name will support ATC’s work within the industrial and oil and gas markets,” said Bobby Toups, ATC’s Chief Executive Officer.

The buy of Dexter follows ATC’s add-on acquisition of Sage Environmental Consulting which closed earlier this week. “The addition of Dexter, combined with our recent acquisition of Sage Environmental Consulting, positions ATC to grow through an increasingly broad portfolio of environmental services,” said Mr. Toups.

Sage Environmental provides environmental engineering and technical consulting services focused primarily on air quality, due diligence and emission reduction credit consulting. The company is headquartered in Austin (www.sageenvironmental.com).

Bernhard Capital Partners is an energy services-focused private equity firm established in 2013 by Jim Bernhard and Jeff Jenkins. The firm is headquartered in Baton Rouge (www.bernhardcapital.com).

© 2016 Private Equity Professional • Private Equity’s Leading News Magazine • 4-15-16

IOP Buys Moulding Maker

by

Industrial Opportunity Partners has acquired Moulure Alexandria Moulding. This acquisition represents IOP’s ninth platform investment for Industrial Opportunity Partners II, LP. IOP is buying the company in partnership with Andre Cholette, the company’s current President and CEO, and other members of the Alexandria management team. Dave Mackin, an IOP Operating Principal, will assume the position of Chairman.

Moulure Alexandria Moulding (Alexandria) is a manufacturer and distributor of wood mouldings and millwork products for the Canadian and Northern US residential housing markets. The company sells directly to retailers as well as to wholesale building product distributors and industrial customers. Alexandria is headquartered and has a manufacturing and distribution facility in Alexandria, ON. Two additional manufacturing operations are located in Bradford, ON and Moxee, WA; and two other distribution facilities are located in Wilkes Barre, PA and La Porte, IN (www.alexmo.com).

“Alexandria is a growing business with an excellent reputation for quality and customer service and strong relationships with both customers and suppliers,” said Ken Tallering, Senior Managing Director of IOP.

Industrial Opportunity Partners focuses on acquiring middle-market manufacturing and value-added distribution businesses, typically with revenues between $30 million and $350 million. The firm targets businesses with strong product, customer, and market positions and provides both management and operational resources to support sales growth and operational improvements. IOP was founded in 2005 and is headquartered in the Chicago suburb of Evanston (www.iopfund.com).

Toronto-based investment bank Osprey Capital Partners (www.ospreycapital.ca) was the financial advisor to the shareholders of Alexandria. Wells Fargo (www.wellsfargo.com) and Scotiabank (www.scotiabank.com) provided financing to support the transaction. McDermott, Will & Emery (www.mwe.com) provided legal representation to IOP.

© 2016 Private Equity Professional • Private Equity’s Leading News Magazine • 4-15-16

AIP Buys Tops

by

Shape Technologies Group, a portfolio company of American Industrial Partners, has acquired Tops Co., a supplier of waterjet cutting systems based in South Korea.

TOPS waterjet cutting systems are used by manufacturers of steel, aluminum, metal, plastic, marble, and glass products. The company was founded in 2001 and is headquartered in Gimhae, South Korea (www.topswaterjet.com/eng).

In 2013, American Industrial Partners (AIP) purchased KMT Waterjet and formed Waterjet Holdings. In January 2014, the first add-on was completed with the buy of Flow International. Then in December 2015, AIP changed the name of Waterjet Holdings to Shape Technologies Group.

Today, Shape Technologies – through a series of add-on acquisitions – provides material processing and surface preparation, automated assembly, robotic motion systems, software, process control, and aftermarket parts. Company owned brands and operating divisions include KMT Waterjet, Dynamic Robotic Solutions, H2O Jet, Flow International, AquaFlow, Tech-Con Automation, and Advanced Pressure Systems.

Shape Technologies is led by David Savage, its chief executive officer, and has 18 operating facilities in the US, Latin America, Europe and Asia. The company has annual revenues of approximately $390 million and employs 1,100. Shape Technologies is headquartered south of Seattle in Kent, WA. (www.shapetechnologies.com).

American Industrial Partners makes equity and debt investments in North American-headquartered industrial companies that have revenues from $100 million to $750 million. Transaction values are typically less than $500 million. The firm was founded in 1989 and is headquartered in New York (www.americanindustrial.com).

© 2016 Private Equity Professional • Private Equity’s Leading News Magazine • 4-15-16