Arsenal Capital Partners has acquired International Fiber Corporation, a portfolio company of Swander Pace Capital.
International Fiber Corporation (IFC) is a supplier of cellulose‐based insoluble fiber products for food and industrial applications. IFC’s fiber is used in food applications for a variety of functions including improving taste and texture, enhancing yield and processability. In industrial applications, IFC’s fiber is used to thicken paints, strengthen rubber used in industrial hoses and belts, for filtration as well as to control viscosity in thermoplastics. IFC’s products include brands such as Solka-Floc, Alpha-Cel, KEYCEL, JustFiber, FloAm, Qual Flo, and NutraFiber. IFC was founded in 1917 and has operating facilities in North Tonawanda, NY (headquarters); Urbana and Oberlin, OH; Nitro, WV; and Temse, Belgium (www.ifcfiber.com).
Arsenal Senior Advisor Ken Blackburn will assume the position of Chief Executive Officer of IFC. “I’m excited to join a best-in-class team at IFC, and look forward to the growth IFC is well-positioned for in both the US and international markets. As we further expand the business’s product suite, we hope we can continue to improve the service and solutions we provide to our customers.”
The acquisition of IFC is the eighth acquisition by Arsenal in 2013, and sixth by its Specialty Industrials Team following the acquisitions of TP Electrical, Fournier Air Conditioning and Refrigeration, Arnco, Pathway Polymers and ADCO Global.
“Arsenal is delighted to invest in a global company with long history of innovation providing great solutions and service to its diverse customers. IFC maintains a strong industry reputation by providing its customers with the highest level of performance and quality, and is well‐positioned to capitalize on the growing demand for fiber products both domestically and internationally,” said John Televantos, a Partner who co-heads the Arsenal’s Specialty Industrials practice.
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 & fine chemicals; segments of healthcare; transportation and logistics; power generation; aerospace & defense; and process industry components and services. Arsenal has over $2 billion of committed capital under management. The firm was founded in 2000 and has offices in New York and Shanghai (www.arsenalcapital.com).
Swander Pace Capital invests in middle-market consumer products companies including branded and non-branded, manufacturers, marketers, and distributors that sell through a range of retail and institutional channels. The firm generally targets companies that have up to $300 million in revenues. Swander Pace manages over $1 billion in equity capital and has offices in San Francisco, CA and Bedminster, NJ (www.spcap.com).
“Swander Pace is pleased with the growth and performance of IFC throughout the duration of our investment, which included the addition of a new production facility, expansion into several new product categories and a significant increase in production capabilities,” said Swander Pace Managing Director Mo Stout. “It has been a very rewarding partnership on both sides, and our team will continue to look for opportunities to partner with innovative, industry-leading companies, such as IFC.”
Sagent Advisors acted as financial advisor and DLA Piper acted as legal advisor to Arsenal. Kirkland & Ellis acted as legal advisor to Swander Pace.
© 2013 PEPD • Private Equity’s Leading News Magazine • 8-28-13
