Arsenal Has Big Exit on Sale of Accella
Search
Share on twitter
Share on linkedin
Share on print
Share on email

Arsenal Has Big Exit on Sale of Accella

Arsenal Capital Partners has signed an agreement to sell Accella Performance Materials to publicly-traded Carlisle Companies for $670 million.

Accella, acquired by Arsenal in 2012, is a manufacturer of custom formulated polyurethane systems and recycled rubber products. The polyurethane business is focused on formulations for spray, pour and cast applications involving foams, coatings, adhesives, sealants, and elastomers. The recycled rubber products business manufactures recycled tire crumb, equine matting, athletic flooring, and playground surfacing. The company, headquartered in the St. Louis suburb of Maryland Heights and led by CEO Andy Harris, has annual revenue of approximately $430 million and EBITDA of $64 million. Accella operates out of 10 manufacturing facilities and seven R&D laboratories in the US, Germany, and China (www.accellacorp.com).

Accella was a very successful investment for Arsenal. The sale price values the company at approximately 10.3x EBITDA and upon closing Arsenal will realized a 7x return on its invested capital.

“Since our initial investment in 2012, Accella’s revenue and EBITDA increased by 7x and 8x, respectively, through a focused organic growth strategy and nine strategic acquisitions,” said Roy Seroussi, a Principal at Arsenal. “The company has become a market leader in several rapidly growing end markets, such as spray foam insulation, as well as roofing solutions and polyurethane truck bed liners.”

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. The firm was founded in 2000 and has offices in New York and Shanghai (www.arsenalcapital.com).

The sale of Accella represents the third exit in 2017 from Arsenal’s third fund, following the sales of Flowchem to KMG Chemicals in June 2017 and Certara to EQT in August 2017. Cumulatively these three exits represent $2.0 billion of enterprise value, a $1.5 billion increase from initial acquisition. Arsenal continues to invest in new portfolio companies from its $1.3 billion fourth fund raised in October 2016, including recent acquisitions of PolyOne Corporation’s Designed Structures and Solutions business in July 2017 and of Cyalume Technologies in September 2017.

“Arsenal’s investment in Accella stemmed from our extensive experience in the polyurethane sector and focus on formulated materials that provide enhanced performance,” said John Televantos, a Partner at Arsenal. “We have been very pleased with our partnership with Andy Harris and the management team that helped us to transform and rapidly scale the company. Accella is well-positioned to continue to grow under Carlisle’s ownership.”

Carlisle Companies (NYSE: CSL) is a diversified company that designs, manufactures and markets a range of products for the commercial roofing, energy, agriculture, lawn and garden, mining and construction equipment, aerospace and electronics, dining and food delivery, and healthcare sectors. The company is headquartered in Scottsdale, AZ (www.carlisle.com).

Lazard Middle Market is serving as the financial advisor to Accella.

© 2017 Private Equity Professional | October 2, 2017

Share on twitter
Share on linkedin
Share on print
Share on email

To search in site, type your keyword and hit enter