MOSCOW (MRC) -- Accella Polyurethane Systems LLC, a portfolio company of Arsenal Capital Partners, has reached a deal with Covestro LLC to acquire certain assets of the target’s spray polyurethane foam (SPF) business, said the producer on its site.
Financial terms of the deal were not disclosed.
The deal for portions of the Covestro business includes both commercial and production operations based in Spring, Texas. The facility serves North America as a producer SPF, often used as insulation and roofing material for the construction industry. The divesture of the SPF business will allow the Covestro to focus on its core assets such as polymers and high-performance plastics, according to Covestro president Jerry MacCleary.
Accella is also a manufacturer of custom polyurethane systems, spray foams, tire fillings, and rubber technology. The buyer’s polyurethane business is focused on foams, binders, coatings, adhesives, sealants and elastomers. Accella, headquartered in Maryland Heights, Missouri, operates from eight facilities across the U.S., in addition to one facility in Europe and China. The buyer distributes its products under the brands: Dash Multi-Corp, MarChem, Arnco, Pathway Polymers, Ultimate Systems, RB Rubber, IPS Polymer Systems, Zeus, Premium Spray Products, Coating & Foam Solutions, Burtin Polymer Labs and Quadrant Spray Foam. The deal for Covestro is expected close in the second quarter of 2017.
Headquartered in New York City, Arsenal is a lower middle market private equity firm focused on industrial and healthcare companies with up to USD250 million in enterprise value. The firm recently closed its fourth private equity fund, called Arsenal Capital Fund IV LP, with $1.3 billion in capital commitments. Since Arsenal formed Polymer Solutions Group through the acquisition of Peach State Labs Inc. in 2015, the PE firms has backed several add-on deals that include: Alkon Solutions Ltd, a maker of liquid coatings and powder for the rubber industry; Flow Polymers LLC, a manufacturer of plastic and rubber additives; and Sasco Chemical Group, a producer of anti-tack agents for the rubber industry.