Goldner Hawn Sells Adhesives Platform to Arsenal

Goldner Hawn has sold Applied Products, a manufacturer and distributor of adhesive and thermal products, to Arsenal Capital Partners.

Applied Products (DBA Applied Adhesives) is a provider of adhesive products used in the packaging, paper converting, graphic arts, bottle labeling, product assembly, and woodworking industries. The company’s products include hot melt, water-based, and reactive adhesives as well as dispensing equipment.

Applied Adhesives, led by CEO John Feriancek, was founded in 1971 and is headquartered in Minnetonka, Minnesota. Mr. Feriancek joined Applied Adhesives in 2017 as its CFO and became the company’s CEO in January 2021 as part of a multi-year management succession plan. The company’s co-owners, CEO Dan Horner and President Brian Webb, are now transitioning from their day-to-day roles with the company.

“It has been a pleasure for Goldner Hawn to partner with Dan Horner and Brian Webb in growing Applied Adhesives, both organically and inorganically, more than tripling its size during the course of our investment, and John has proven to be a fantastic successor to Dan and Brian,” said Chad Cornell, a partner at Goldner Hawn. “John led a number of successful add-on acquisitions for the company and is the right leader to continue Applied Adhesives’ growth. We wish John, his team, and Arsenal all the best in Applied Adhesives’ next chapter.”

Since Goldner Hawn’s acquisition of Applied Adhesives in March 2017, the company has completed five add-on acquisitions. Most recently, in October 2020, the company acquired Premier Packaging Solutions, a Chattanooga, Tennessee-based distributor of hot-melt and water-based adhesives.

“We are grateful for the outstanding support Goldner Hawn has provided us over the past four years,” said Mr. Feriancek. “As we look toward the future, we are thrilled to partner with Arsenal. With its backing, we will continue to execute on our growth initiatives and strive to be the adhesive solutions partner of choice for businesses throughout North America.

“We are delighted to partner with John and his team and excited to have Dan continue on the board,” said Roy Seroussi, an investment partner of Arsenal. “Arsenal brings decades of domain and technical expertise in the adhesives and sealants market, and we are excited to support Applied Adhesives’ organic and acquisition growth initiatives and continue to build the company as a leading value-added distributor.”

The buy of Applied Adhesives is Arsenal’s third platform investment in the adhesives and sealants sector, following Arsenal’s investment Royal Adhesives & Sealants (exited in 2015) and its current investment in Meridian Adhesives Group (formed in 2018).

New York-headquartered Arsenal invests in middle-market specialty industrial and healthcare companies that have $100 million to $500 million of enterprise value. Since its founding in 2000, Arsenal has raised total capital of $5.3 billion, closed more than 200 platform and add-on acquisitions, and exited more than 30 portfolio companies.

Goldner Hawn invests from $10 million to $30 million in companies that have EBITDA from $5 million to $20 million. Sectors of interest include industrial manufacturing, value-added distribution, consumer products and services, and outsourced business services. The firm was founded in 1989 and is based in Minneapolis.

BlackArch Partners was the financial advisor to Applied Adhesives and Goldner Hawn on this transaction.

© 2021 Private Equity Professional | March 17, 2021

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