Arsenal Buys Closed-Loop Plastic Company

Arsenal Buys Closed-Loop Plastic Company

Arsenal Capital Partners has agreed to acquire a controlling interest in Revolution, a provider of sustainable, closed-loop plastic products serving the agricultural, consumer, and industrial markets.

Revolution markets an array of plastic products used in the agricultural sector, which it then recovers, cleans and processes into a post-consumer resin (PCR).  The company closes the loop by using this PCR to manufacture the same agricultural products again along with other products such as trash can liners, carryout bags and construction films.

The company’s brands include Delta Plastics, Revolution Bag, Revolution Ag, Rodeo Plastics, and Command. Revolution is led by CEO Sean Whiteley and is headquartered in Little Rock, AR (

“We commend the company on its success in building a market-leading business and the management team’s passion for developing unique sustainable plastic solutions,” said Tim Zappala, a senior partner of Arsenal. “Through its innovative closed-loop process, Revolution has led the industry in recycling for both closed and green out loops, keeping over 1.5 billion pounds of plastic out of the landfills.”

Arsenal invests in middle-market specialty industrial and healthcare companies that have from $100 million to $500 million in enterprise value. The firm has offices in New York and Shanghai (

“We are excited about the many growth initiatives available to us and our partnership with Arsenal will help us identify and capitalize on those opportunities,” said Mr. Whiteley. “They have successfully invested in businesses like ours and their background in manufacturing, focus on sustainability and commitment to expanding our recycling and manufacturing capabilities is a perfect fit with our corporate objective of making plastic a renewable resource.  The dramatic growth in demand and expectations by businesses and consumers for sustainable plastic solutions provides us with significant white space and opportunity.”

“Revolution has the most innovative and scaled methods for recycling plastic film, coupled with industry-leading capabilities to manufacture high PCR finished products in many cases closing loops for its customers,” said George Abd, an operating partner of Arsenal. “This is just the beginning of the long-term trend for robust growth as demand continues to build for better ways to handle plastic waste and PCR products, and Arsenal is excited about being a strategic partner to accelerate Revolution’s growth both organically and inorganically.”

Dhu Thompson, former majority owner and chairman of Revolution, will continue as a board member and retain a meaningful investment in the company upon completion of the transaction which is expected by the end of July.

According to a source familiar with this transaction, Twin Brook Capital Partners, the middle-market direct lending arm of Angelo Gordon, served as joint lead arranger and syndication agent on debt financing to support the transaction. Chicago-based Twin Brook 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 platform ranging from $25 million up to $150 million. Twin Brook’s products include opportunistic investments in second lien, mezzanine, and equity co-investments.

William Blair & Company was the financial advisor to Revolution.

© 2019 Private Equity Professional | July 18, 2019

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