Arsenal Capital Partners has acquired polyurethane foam company Peterson Chemical Technology, a manufacturer and distributor of foam additives and specialty polyols used for the development of viscoelastic foam (“memory foam”). Polyols are generally used to produce other polymers and are reacted with materials to make polyurethanes used to make mattresses, foam insulation for appliances, and automotive seating.
Peterson Chemical will remain as an independent company within Arsenal’s Elite Comfort Solutions platform and operate as a separate business. Bruce Peterson, President of Peterson Chemical, will continue to oversee the company. “This transaction with Elite Comfort Solutions will enable Peterson Chemical to grow and expand its portfolio of technologies by accelerating investment in capacity, research and development capabilities, and talent,” said Mr. Peterson.
Arsenal has been very active lately in the polyurethane foam industry. In late March, Arsenal acquired Elite Foam and signed an agreement to acquire the foam production assets of Hickory Springs Manufacturing Company (HSM Foam). These transactions follow the firm’s acquisition earlier in March of Pacific Urethanes, a developer and seller of polyurethane foam products. Once the buy of HSM Foam is completed, all three of these companies will operate as part of Arsenal’s specialty foam platform company, Elite Comfort Solutions.
“Peterson Chemical has been a leading innovator in the polyurethane foam sector and we are delighted to support Bruce and his team with greater focus on future innovations. Our intent with Elite Comfort Solutions is to commercialize new products more effectively around the world for the benefit of the bedding industry and the broader polyurethane market,” said John Televantos, a Partner at Arsenal and Co-Head of the firm’s Specialty Industrials Group.
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 and fine chemicals; segments of healthcare; transportation and logistics; power generation; aerospace and defense; and process industry components and services. Arsenal has $1.7 billion of committed capital under management. The firm was founded in 2000 and has offices in New York and Shanghai (www.arsenalcapital.com).
Peterson Chemical is based in Fort Smith, AR (www.petersonchemicals.com).
© 2016 Private Equity Professional • Private Equity’s Leading News Magazine • 4-15-16
