Arsenal Capital Partners has completed the sale of its portfolio company Kel-Tech to Clariant Corporation. Arsenal acquired Kel-Tech in March 2014.
Kel-Tech is a manufacturer and supplier of specialty chemicals and related services used in the drilling, production and transportation of oil and natural gas. The company was founded in 1983 and is headquartered in Midland, TX (www.keltechinc.com). In March 2014, simultaneous with Arsenal’s buy of Kel-Tech, Kel-Tech acquired Danlin Industries from Hastings Equity Partners. Danlin, like Kel-Tech, is a supplier of specialty chemicals used in oil & gas exploration and production. The company is based in Thomas, OK (www.danlin.us).
“We are pleased to have worked with the Kel-Tech organization in creating a leading player in the oilfield production chemicals market. During our partnership we successfully integrated Danlin, augmented the organization with management talent, and strengthened the company’s manufacturing facilities,” said Tim Zappala an Arsenal Partner who co-heads the firm’s specialty industrials group.
Arsenal Capital Partners invests in middle-market specialty industrial and healthcare companies that have $50 million to $250 million in enterprise value. Industries of specific interest include specialty and fine chemicals; segments of healthcare; transportation and logistics; power generation; aerospace and defense; and process industry components and services. Arsenal has $1.7 billion of committed capital under management. The firm was founded in 2000 and has offices in New York and Shanghai (www.arsenalcapital.com).
“The long term outlook for North American oil production remains positive and Kel-Tech’s relationships and geographic footprint in the major oil basins position them well to take advantage of the industry trends,” said Shawn Abrams, an Industry and Operating Partner in Arsenal’s specialty industrials group.
Clariant Corporation, the buyer of Kel-Tech, is based in Charlotte and operates as a subsidiary of Clariant AG, a publicly-traded specialty chemicals company, based near Basel in Muttenz, Switzerland (www.clariant.com).
© 2016 Private Equity Professional • 10-4-16
