Lone Star Funds has agreed to sell Arclin, a provider of chemistry-based products used in residential building products applications, to The Jordan Company (TJC).
Arclin is a manufacturer of proprietary resins and fiber-based surface overlays that are used in the residential building products market, as well as industrial, furniture and non-residential construction markets. The company’s resins, for example, are used as the bonding agent in plywood, oriented strand board (OSB) and laminated veneer lumber (LVL); as a dust suppressant for roads and rail cars; and in slow-release nitrogen fertilizer. Arclin’s resin-treated papers are used in concrete forming; fire retardation; interior and exterior decorative panels; filtration; insulation and roofing materials.
Arclin was founded in 1992 and filed for bankruptcy in 2009. In 2010, the company emerged from bankruptcy with its equity majority-owned by its former creditors, Black Diamond Capital Management and Silver Point Capital. Lone Star acquired Arclin from Black Diamond and Silver Point in 2017.
Today, Arclin is headquartered in Roswell, Georgia and has more than 600 employees in 12 facilities in the United States and Canada. Arclin’s senior management team, led by CEO Brad Bolduc, will maintain an equity stake in Arclin and will continue to lead the company in partnership with The Jordan Company.
“We are extremely proud of the growth that the Arclin team has achieved over the last several years during our ownership period,” said Donald Quintin, the president of Lone Star Opportunity Funds. “We have enjoyed working with Brad and his team, and we are pleased that management has identified a great partner to support the company’s next chapter of growth.”
“We are excited and look forward to partnering with TJC,” said Mr. Bolduc. “We believe this partnership will accelerate our growth initiatives related to organic growth, new product development, operational enhancements, and strategic acquisitions. In support of our corporate vision to remain the market leader in innovation, we will continue investing significantly in our technologies to ensure exceptional product performance for our customers and markets served.”
“TJC is excited to have identified a world-class platform and management team in Arclin,” said Ian Arons, a partner at TJC. “Arclin fits extremely well with our investment strategy based on our extensive experience in the specialty chemicals and building products industries. We see great growth opportunities ahead and look forward to supporting the team.”
The Jordan Company invests in a range of industries including industrials, transportation and logistics, healthcare, consumer, telecom, technology, and utilities. The firm was founded in 1982 and is headquartered in New York City with an additional office in Chicago.
Dallas-headquartered Lone Star invests in private equity, credit, real estate, and other financial assets. Since the establishment of its first fund in 1995, Lone Star has organized 21 private equity funds with aggregate capital commitments totaling over $85 billion.
RBC Capital Markets is the financial advisor to Arclin and Lone Star, and Barclays Capital is the financial advisor to TJC.
TJC’s acquisition of Arclin is expected to close in the third quarter of 2021.
© 2021 Private Equity Professional | August 18, 2021