American Securities has acquired a majority equity interest in Meridian Adhesives Group, a portfolio company of Arsenal Capital Partners. Both Arsenal and the senior management team of Meridian remain as investors in the company.
Meridian is a producer of custom and complex specialty adhesives and sealants used by more than 5,000 customers that operate in the electronics, infrastructure, flooring, packaging, and product assembly markets. Houston-headquartered Meridian has more than 560 employees and operates 25 worldwide facilities.
“We are grateful for the support of Arsenal over the past four years as we established Meridian as the go-to solution provider in the industry,” said Dan Pelton, the chief executive officer of Meridian. “We are excited about Meridian’s next phase of growth and our new partnership with American Securities.”
“The time that we have spent evaluating and investing in companies in the adhesives space gives us an immense appreciation for Meridian’s leadership positions in attractive and growing end markets and applications,” said Scott Wolff, a managing director at American Securities. “We are excited to support the company’s future organic growth and M&A strategies.”
One day after the closing of its buy of Meridian, American Securities closed the add-on acquisition of Design Polymerics, a California-based manufacturer of sealants, adhesives, insulation mastics (high-viscosity coatings), and indoor air quality coatings.
“Meridian’s growth has been a result of focusing on positive long-term trends in technologies and end markets, coupled with hard work from a talented leadership team and employee base,” said Roy Seroussi, an investment partner at Arsenal. “We look forward to our continued partnership with the company and American Securities as we build a leading, global adhesives company.”
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 $7 billion, closed more than 250 platform and add-on acquisitions, and exited more than 30 portfolio companies.
American Securities invests in businesses with $200 million to $2 billion of revenue and $50 million to $250 million of EBITDA. Sectors of interest include industrial manufacturing, specialty chemicals, aerospace and defense, energy, business services, healthcare, media, restaurants, and consumer products. The firm has more than $26 billion of capital under management and has offices in New York City and Shanghai.
Morgan Stanley & Co. was the financial advisor to American Securities. Citi and Moelis & Company were the financial advisors to Meridian.
© 2022 Private Equity Professional | September 13, 2022
