Arsenal Capital Partners has completed its $115 million buy of publicly-traded PolyOne Corporation’s Designed Structures and Solutions business segment through a new portfolio company, Spartech LLC.
PolyOne acquired publicly-traded Spartech Corporation in 2013 for approximately $390 million in cash and stock. At that time, Spartech had annual revenues of approximately $1.2 billion and an EBITDA of $56 million.
Spartech makes and sells packaging, visual and structural sheet, and other specialty products that are used in the food, medical, building and construction, aerospace, and automotive markets. Company owned brand names include Polycast, Royalite and SoundX. Spartech has 15 manufacturing facilities and is headquartered in the St. Louis suburb of Maryland Heights, MO (www.spartech.com).
With the closing of the transaction, Arsenal has named George Abd, an Arsenal Senior Advisor, as Spartech’s new CEO and President. Mr. Abd was an executive of the former Spartech Corporation for approximately 10 years including as its CEO until departing in July 2007. Most recently he was CEO and President of St. Louis-based Pretium Packaging, a maker of rigid plastic containers and closures and a portfolio company of Genstar Capital, from January 2008 to January 2016.
“We have been fortunate to have had the opportunity to work with George over the last year on shaping our plastics and packaging strategy and were excited to work with him to carve out Spartech into an independent company,” said Tim Zappala, a Partner at Arsenal and Co-Head of the firm’s Specialty Industrials Group. “We are very enthusiastic for the prospects of Spartech under George’s leadership, along with exceptional talent already within the business, and are encouraged we can leverage this acquisition as a broader platform with future acquisitions.”
Arsenal Capital Partners invests in middle-market specialty industrial and healthcare companies that have $100 million to $500 million in enterprise value. Industries of specific interest include specialty industrials and healthcare companies. 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).
© 2017 Private Equity Professional | July 21, 2017
