Arsenal Capital Partners has acquired Polytek Development Corp., a manufacturer of liquid mold rubbers and casting plastics, from Morgenthaler Private Equity (MPE).
Polytek manufactures a line of specialty polymers including polyurethane elastomers and casting resins, silicone, latex, plastisol, thermoplastic elastomers, and epoxies. The company’s products are used in applications where molds are needed to reproduce complex objects in a variety of industrial, construction, entertainment, fine arts, and technology applications including concrete casting, special effects, tooling, sculpture, and prototyping. Customers include artists, sculptors, hobbyists, model makers and industrial users. Polytek, led by CEO Jonathan Kane, is headquartered north of Philadelphia in Easton, PA (www.polytek.com).
MPE acquired Polytek in August 2015 and completed three add-on acquisitions during the course of its ownership. In July 2018, Polytek acquired Alumilite, a Kalamazoo, MI-based formulator and supplier of mold making and casting materials to the hobby, craft, education, and do-it-yourself consumer end markets (www.alumilite.com).
“The team at Polytek and I are excited to partner with Arsenal, said Mr. Kane. “Their deep experience in specialty chemicals and their operating model will bring tremendous value to Polytek, its customers, and its employees, and accelerate our plans for growth.”
Arsenal has significant experience investing in the polymers market, having previously built Accella Performance Materials, a polyurethanes systems company, through nine add-on acquisitions. Accella was acquired by the Carlisle Companies (NYSE: CSL) in November 2017 for $670 million in cash. And Elite Comfort Solutions, a manufacturer of specialty polyurethane foam technologies used in the bedding market. Elite was formed in March 2016 by Arsenal and is a current portfolio company of the firm.
“Polytek has developed niche technologies in a number of applications, with a strong reputation of innovation and technical support,” said Roy Seroussi, an Investment Partner at Arsenal. “The company’s portfolio fits well with Arsenal’s previous expertise in polymer technologies, such as in polyurethanes, silicones, and epoxies, where we have successfully invested in the past.”
Arsenal invests in middle-market specialty industrial and healthcare companies that have from $100 million to $500 million in enterprise value. The firm was founded in 2000 and has offices in New York and Shanghai (www.arsenalcapital.com).
MPE, the seller of Polytek, invests in lower middle market companies that are valued from $25 million to $150 million and have EBITDAs between $5 million and $20 million. Sectors of interest include high-value manufacturing and industrial services. The firm has offices in Cleveland and Boston (www.mpepartners.com).
© 2018 Private Equity Professional | October 22, 2018