Polytek Development Corp., a manufacturer of liquid mold rubbers and casting plastics and a portfolio company of Arsenal Capital Partners, has acquired Environmental Technology.
Environmental Technology (ETI) formulates coating, casting and molding products that are used by professional artists, crafters and hobbyists. The company’s product line includes epoxy resins and clays, polyurethane and polyester resins, silicone rubbers and putties, and mold making and casting accessories.
Company-owned brand names include EnviroTex Epoxy Coating, EasyCast Clear Casting Epoxy, EasySculpt Epoxy Modeling Clay, EasyMold Silicone Rubber, and FastCast Casting Urethane. ETI was founded in 1969 and is headquartered in the northern California city of Fields Landing (www.eti-usa.com).
Polytek manufactures a line of specialty polymers including polyurethane elastomers and casting resins, silicone, latex, plastisol, thermoplastic elastomers, and epoxies. The company’s products are used in applications where molds are needed to reproduce complex objects in a variety of industrial, construction, entertainment, fine arts, and technology applications including concrete casting, special effects, tooling, sculpture, and prototyping. Customers include artists, sculptors, hobbyists, model makers and industrial users. Polytek, led by CEO Jonathan Kane, is headquartered north of Philadelphia in Easton, PA with additional facilities in Pomona, CA; Kalamazoo, MI; and Franklin, IN (www.polytek.com).
“In planning a transition of the company, I can think of no better home than Polytek, and I look forward to the continued success of the ETI brand,” said David Fonsen, founder of ETI. Mr. Fonsen will remain in his current role through an integration process, and the two companies will continue to do business under their existing names.
Arsenal acquired Polytek from Morgenthaler Private Equity (MPE) in October 2018. The buy of ETI builds on Polytek’s existing market position in the consumer mold making and casting materials sector. In July 2018, under MPE ownership, Polytek acquired Alumilite, a Kalamazoo, MI-based formulator and supplier of mold making and casting materials to the hobby, craft, education, and do-it-yourself consumer end markets. “Complementary to the 2018 acquisition of Alumilite, the acquisition of ETI enhances our presence in consumer markets and allows us to further provide our customers with excellent service, increased accessibility, and a variety of mold making and casting solutions,” said Mr. Kane.
Another recent add-on by Polytek was its March 2019 buy of BCC Products, a Franklin, IN-based manufacturer of specialty polymers for tooling, mold making, and casting applications in the automotive, aerospace, foundry and marine industries (www.bccproducts.com).
Arsenal invests in middle-market specialty industrial and healthcare companies that have from $100 million to $500 million in enterprise value. The firm has offices in New York and Shanghai (www.arsenalcapital.com).
Genesis Capital (www.genesis-capital.com), which has assisted Polytek with other add-on acquisitions, was the financial advisor on this transaction.
© 2019 Private Equity Professional | May 14, 2019