Polymer Solutions Group (PSG), a manufacturer of specialty polymers and additives and a portfolio company of Arsenal Capital Partners, has acquired Phoenix Chemical Company.
Phoenix Chemical is a specialty chemical manufacturer and distributor focused on the carpet; textile; water treatment; and household, industrial & institutional chemicals markets. The company, led by its President John Bryant, is based in Calhoun, GA.
“I am delighted with the sale of our Phoenix Chemical business to PSG. We have built a great business and combining it with the PSG platform allows us to continue our growth with expanded technology and manufacturing resources,” said Mr. Bryant. “Our customer relationships are key to our success, and with PSG, we expect to be able to expand our offerings and enhance our ability to add value.”
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. In February 2016, PSG acquired Flow Polymers, a 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, a maker of specialty chemicals – specifically rubber anti-tack agents – used in the rubber, wood, consumer and medical industries.
PSG is led by President and CEO Mike Ivany and is headquartered northwest of Atlanta in Rome, GA (www.polymersolutionsgroup.com) (www.peachstatelabs.com) (www.flowpolymers.com) (www.sascochemical.com).
The buy of Phoenix Chemical brings to PSG significant market expansion, technical and manufacturing capabilities, and enhanced logistics that complement PSG’s business units. The assets of Phoenix Chemical and its affiliated entities – New South Distribution, Inc. and Olive Branch Distribution, Inc. – are being acquired by Phoenix Chemical Company LLC, a newly formed subsidiary of PSG.
TwinBrook served as joint lead arranger and documentation agent on $392 million of financing to support the buy of Phoenix Chemical and to refinance the debt of Polymer Solutions. TwinBrook focuses on loans to private equity-owned companies with EBITDA between $3 million and $50 million, with an emphasis on companies with $25 million of EBITDA and below. The firm targets senior financing opportunities up to $200 million with hold sizes across the Twin Brook platform ranging from $25 million up to $100 million. Since inception in the fourth quarter of 2014, Twin Brook has closed 164 transactions and provided total arranged commitments of approximately $5.1 billion (www.twincp.com).
Arsenal invests in middle-market specialty industrial and healthcare companies that have $100 million to $500 million in enterprise value. Industries of specific interest include specialty industrials and healthcare companies. The firm was founded in 2000 and has offices in New York and Shanghai (www.arsenalcapital.com).
© 2018 Private Equity Professional | February 23, 2018