Arsenal Invests in AvCarb

Arsenal Invests in AvCarb

Arsenal considers AvCarb's engineered materials as critical components in the production, storage, and conversion of hydrogen to electricity

AvCarb’s products include felts, papers, woven fabrics used in hydrogen fuel cells and electrolyzers, flow batteries, automotive and industrial applications

SOURCE: AvCarb Material Solutions

Arsenal Capital Partners has acquired AvCarb Material Solutions, a manufacturer of engineered carbon-based products.

AvCarb’s products include felts, papers, woven fabrics, gas diffusion layers and molded laminates that are used in hydrogen fuel cells and electrolyzers, flow batteries, automotive and industrial applications.

AvCarb was founded in the early 1960’s – back then the company supplied components used in heat shields for the Apollo Space Program – and today is led by President Guy Ebbrell and CEO Roger Masse. AvCarb is headquartered 30 miles northwest of Boston in Lowell, Massachusetts.

“As AvCarb’s customers accelerate the deployment of decarbonization technologies such as fuel cells, their needs for production capacity, development support, and customer service are increasing rapidly,” said Mr. Ebbrell. “Arsenal brings scale, resources, and experience that will ensure AvCarb continues to support customer success across product lines and around the world.”

“We are excited to partner with Roger, Guy, and the AvCarb organization,” said Roy Seroussi, an investment partner of Arsenal. “The company’s technology portfolio is well-positioned to address the imminent needs for global de-carbonization by providing highly engineered materials that enable the production of hydrogen, the conversion of hydrogen to electricity, and the storage of energy.”

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 200 platform and add-on acquisitions, and exited more than 30 portfolio companies.

“AvCarb has developed proprietary carbon-based materials through decades of R&D, and we look forward to building on the company’s strong technology foundation to support the company’s growth internationally,” added Ryan Berman, a principal at Arsenal.

Twin Brook was the administrative agent on debt financing to support Arsenal’s investment in AvCarb. 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.

Houlihan Lokey was the financial advisor to AvCarb on this transaction.

© 2021 Private Equity Professional | December 7, 2021

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