Molecular Products Group, a portfolio company of Arlington Capital Partners since December 2016, has acquired the O.C. Lugo Company.
The O.C. Lugo Company manufactures sodium chlorate-based chemical oxygen generators. The company is a prime contractor to the United States Navy and also sells into the petrochemical and commercial marine markets. Chemical oxygen generators are devices used to produce pure, breathable oxygen for use in enclosed spaces, including submarines.
O.C. Lugo was founded in 1973 by Oscar Lugo and today is a second-generation family-run business led by Oscar’s son, Richard Lugo. The company is headquartered 50 miles southeast of Pittsburgh in Connellsville, PA.
Molecular Products is a manufacturer of chemistry-based products that generate oxygen, remove carbon dioxide, and filter hazardous or harmful gas emissions. The company’s products are used in the healthcare, defense and industrial markets. Molecular Products, founded in 1924 and today led by CEO Troy Rhudy, has over 130 employees with manufacturing operations in Harlow, UK and Louisville, CO (near Boulder), and distribution offices in Australia, China and India.
“As the world leader in chemical oxygen generation systems, Molecular Products is excited to welcome the O.C. Lugo Company into the group,” said Mr. Rhudy. “Our combined capabilities will support our continued growth in the defense industry while strengthening our service to our global customer base.”
“The acquisition of O.C. Lugo demonstrates Molecular Products’ continued investment in its market-leading chemical oxygen generation franchise. The transaction expands the company’s product offerings and provides another key chemical oxygen generator manufacturing site in addition to our existing capacity in Harlow, UK and in our state-of-the-art Louisville, CO facility,” said Peter Manos, a managing partner at Arlington Capital.
In December 2018, Molecular Products acquired the Sodasorb products business of Henkel AG. The Sodasorb product line includes carbon dioxide absorbents used in the healthcare and safety industries to remove carbon dioxide from anesthesia systems, saturation diving chambers, diving re-breathers, and industrial safety equipment. Henkel AG is a Düsseldorf, Germany-based chemical and consumer goods company.
“This buy of O.C. Lugo is Molecular Products’ second strategic acquisition in the last twelve months,” added Malcolm Little, a partner at Arlington Capital. “We are very excited for the tremendous growth opportunities these highly complementary acquisitions bring in each of Molecular Products’ core markets.”
Arlington Capital was founded in 1999 and has completed over 90 acquisitions since its inception. The Chevy Chase, MD-based firm is currently investing out of Arlington Capital Partners V LP, a $1.7 billion fund that closed in June 2019.
© 2019 Private Equity Professional | November 5, 2019