Publicly-traded Cyalume Technologies has signed an agreement to be acquired by Arsenal Capital Partners for $45 million. The all-cash transaction is expected to close in September 2017. For the trailing twelve months ending March 2017 the company’s revenue was $38.9 million with an EBITDA of $9.4 million.
Cyalume Technologies designs and manufactures non-pyrotechnic tactical products used in military, law enforcement, and safety applications. The company’s products include chemical lights for army, navy, air force, coast guard, military police, fire, and special operations; training and tactical ammunition alternatives; and light sticks for police, fire, and homeland security officials. Cyalume’s specialty products division manufactures chemical products – ranging from simple raw ingredients to finished product formulations to complex high performance polymers – that are used in the pharmaceutical, medical products, cosmetic and commercial markets.
Cyalume, headquartered in Ft. Lauderdale, has manufacturing facilities in West Springfield, MA and Bound Brook, NJ as well as a subsidiary, Cyalume Technologies SAS, located near Marseille in Aix-en-Provence, France (www.getcyalume.com) (www.cyalume.com).
“Cyalume has a strong brand and long-term relationships with blue chip customers,” said Sal Gagliardo, an Industry and Operations Partner at Arsenal. “Given its robust portfolio of technologies, we expect that Cyalume will serve as a platform for further acquisitions in the specialty chemicals and performance polymers sector.”
Arsenal 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).
“Our investment in Cyalume represents an opportunity for Arsenal to leverage its industry knowledge and operating expertise in the formulated materials sector to support the company’s strategy,” said Roy Seroussi, a Principal at Arsenal.
Miami-based investment bank Cassel Salpeter & Co. (www.casselsalpeter.com) was the financial advisor to Cyalume.
© 2017 Private Equity Professional | August 8, 2017
