Arsenal Capital Partners has acquired Seal For Life Industries from publicly traded Berry Global Group for $328 million.
Seal For Life (SFL) provides corrosion prevention, waterproofing, and insulation products that prolong the life and durability of water and oil pipelines, tanks and terminals, power generation and petrochemical infrastructure.
The company’s products include plastic meshes to protect pipes and pipelines from rocks when backfilled; cathodic protection products; visco-elastic coatings to protect assets from corrosion and water ingress; cold-applied and fused tape products; single wrap pipeline coating systems; and liquid coating products. SFL products are sold under the company-owned brand names Anodeflex, Stopaq, Polyken, Covalence, and Powercrete.
SFL, with annual sales of approximately $120 million, has operations in the Netherlands, Belgium, India, Mexico, and the United States, with over 380 employees (www.sealforlife.com).
According to Arsenal, SFL will serve as a new platform investment in the coatings sector focused on the infrastructure and industrial markets. “SFL has an excellent market reputation for providing its customers with the highest level of performance and quality to meet stringent regulatory requirements,” said Sal Gagliardo, an operating partner of Arsenal. “The company continues to innovate protective and anti-corrosion solutions that are solving the market needs in the oil and water pipeline industry and in emerging applications for other core infrastructure markets. We expect to build on the company’s leading market brands and accelerate the trajectory of new technologies and solutions.”
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).
“SFL will benefit from Arsenal’s resources and expertise in the coatings and materials sector, where we have strong relevance in the company’s markets and technologies. We look forward to supporting the SFL team and building the business organically and with strategic acquisitions that will further expand its position in the broader coatings protection industry,” said Roy Seroussi, an investment partner of Arsenal.
“We are excited to partner with Arsenal given its deep expertise in the coating and sealants sector,” said Dirk Totte, general manager of SFL. “Our strong platform combined with strategic investments and acquisitions will accelerate growth in current and new end markets such as renewable energy, infrastructure and commercial buildings.”
Berry Global Group, the seller of SFL, is a Fortune 500 manufacturer and marketer of plastic packaging products. The company is headquartered in Evansville, IN and has over 290 worldwide facilities and more than 48,000 employees (www.berryglobal.com).
J.P. Morgan Securities was the financial advisor to Berry and William Blair & Company advised Arsenal.
© 2019 Private Equity Professional | July 30, 2019
