Jordan Buys Additives Division from Arsenal

The Jordan Company has purchased the polymer additives division of Polymer Solutions Group (PSG), a portfolio company of Arsenal Capital Partners.

The polymer additives division (Polymer Additives) manufactures proprietary and custom polymer additives, dispersions, and performance chemicals used in the rubber, plastic, and engineered wood industries. The company has five facilities and is headquartered in Cleveland.

Polymer Solutions Group was formed by Arsenal in June 2015 when the firm acquired Peach State Labs, a provider of specialty polymers and performance chemicals. Five additional add-on acquisitions followed:

  • In February 2016, PSG acquired Flow Polymers, a Cleveland-based manufacturer of chemical dispersions, process aids and homogenizing agents used in the tire, automotive, industrial products, wire and cable, and plastics markets. Chemical dispersions and agents are used by manufacturers to shorten the processing time and temperatures of thermoplastic resins such as polypropylene, polyethylene, polystyrene, ABS and nylon.
  • In April 2016, PSG acquired SASCO Chemical Group, an Albany, Georgia-based maker of specialty chemicals – specifically rubber anti-tack agents – used in the rubber, wood, consumer and medical industries.
  • In September 2016, PSG acquired Alkon Solutions, a Leeds, UK-based manufacturer of anti-tack products that are used in the rubber industry.
  • In February 2018, PSG acquired Phoenix Chemical, a Calhoun, Georgia-based manufacturer and distributor of specialty chemicals used in the carpet, textile, water treatment, and household, industrial and institutional chemicals markets; and
  • In April 2019, PSG acquired PUR Polymerics, a Cambridge, Ontario-based maker of release agents used in the particleboard, fiberboard, and engineered wood markets.

PSG’s functional materials division (comprised of Peach State Labs and Phoenix Chemical) will remain with Arsenal and is not part of this transaction.

Polymer Additives is led by CEO Mike Ivany. “My team and I are excited to be working with Jordan as we build out our global platform, grow our release agent market position, and continue to expand the market for our advanced technology SureMix Performance Process Aids for silica rubber compounding. I want to thank the Arsenal team who has been a great partner. They helped us to reach our goals and to set the company on a trajectory that will propel growth over the next five years.”

“Through five strategic acquisitions in three years, PSG built the Polymer Additives business around high-value solutions in its core end markets,” said Roy Seroussi, an investment partner of Arsenal. “The partnership of The Jordan Company and management will enable further expansion in existing applications and into new segments. We want to thank Mike and his team for building PSG Polymer Additives, and we wish the company continued success.”

Arsenal invests in middle-market specialty industrial and healthcare companies that have $100 million to $500 million in enterprise value. The firm has offices in New York and Shanghai.

“The company’s culture, innovative product development, and long-standing customer relationships make Polymer Additives a strong fit for our investment strategy,” added Ian Arons, a partner of The Jordan Company.

The Jordan Company is a middle-market private equity firm that invests in a range of industries including industrials, transportation & logistics, healthcare, consumer, telecom, technology, and utilities. The firm was founded in 1982 and is headquartered in New York with an additional office in Chicago.

Lazard Middle Market and William Blair were the financial advisors to both PSG and Arsenal.

© 2019 Private Equity Professional | December 2, 2019

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