Arsenal Capital Partners, a New York-based private equity firm that invests in middle-market specialty industrial and healthcare companies, announced today that it is acquiring Dash Multi-Corp. of Maryland Heights, Missouri, which makes formulated polyurethane, vinyl plastisol, specialty coatings as well as recycled rubber products. Terms of the deal were not disclosed.
Arsenal Capital Partners, a leading New York-based private equity firm that invests in middle-market specialty industrial and healthcare companies, announced today that it has entered into an agreement to acquire Dash Multi-Corp., a leading manufacturer of formulated polyurethane, vinyl plastisol, specialty coatings as well as recycled rubber products.
The acquisition of Dash represents the fifth acquisition by Arsenal’s Specialty Industrials Group in 2012, as well as another example of the firm’s acquiring a company from its founder. Founded in 1973 by Marvin S. Wool, the St. Louis, MO-based company manufactures custom formulated plastics and chemicals, coated fabrics, and recycled rubber products and generates over $100 million in revenue. Concurrent with the acquisition by Arsenal Capital Partners, Dash’s coated fabrics operations will become a separate entity owned by Marlen Textiles, Inc.
Dash’s two primary businesses operate from seven strategically located manufacturing facilities throughout the United States: MarChem, the plastics and chemicals business, is a market leader in the development and manufacture of polyurethanes, vinyl plastisols, specialty coatings and adhesives used in a variety of processes ranging from medical device molding to field installation of niche flooring applications, and; the recycled rubber business which manufactures high quality and durable large mat pressed products, rolled rubber, and molded goods for commercial flooring and industrial applications. The business also manages one of the largest tire recyclers in the United States, which processes each year approximately 30 million pounds of tires into rubber particles.
“Over the past 40 years, Marvin Wool has built a great company with an excellent reputation that is highly respected by its customers across a variety of end markets. Our team sees Dash as a great platform to grow in existing and new markets and the company is well positioned to support its customers to grow with leading technology, quality and service. We are excited to partner with management and help accelerate the development of the company going forward,” said John Televantos, a Partner at Arsenal Capital Partners and co-head of the firm’s Specialty Industrials Group.
“We considered a number of potential buyers for the business and selected Arsenal Capital Partners as the right partner to help the company grow to its full potential. Their knowledge and commitment to the chemical industry and their interest and ability to enable us to grow our business in existing and new markets distinguished them among potential buyers,” said Mr. Wool.
Tim Zappala, a Partner at Arsenal Capital Partners and co-head of the firm’s Specialty Industrials Group, added, “Dash operates in several exciting sectors and our plan is to invest in the business and identify strategic acquisitions to expand its core capabilities and provide more solutions to customers.”
Dash follows Arsenal’s specialty industrial investments in 2012 in IGM Resins, Plasticolors Inc., Evonik’s Colorants business and Fluoro-Seal Holdings. The firm’s current investments in the industrials sector include IGM Resins, a leading provider of intermediates to the global ultraviolet (“UV”) radiation cure coatings, inks and adhesives industry; Chromaflo Technologies, (combination of Plasticolors Inc. and Evonik’s Colorants business), the largest independent global pigment dispersion platform; Fluoro-Seal Holdings, a leading provider of unique plastic barrier, adhesion and surface enhancement products and services as well as manufacturer of value-added materials; Royal Adhesives & Sealants, a leading producer of proprietary, high-performance adhesives, sealants and coatings. Previous investments in the sector include Genovique Specialties, IDQ Holdings, Novolyte Technologies, Sermatech International, Velsicol Chemical, and Vertellus Specialties.
The transaction is expected to close by the end of December 2012. Prestwick Partners, LLC acted as financial advisor and Thompson Coburn LLP acted as legal advisor to Dash. DLA Piper LLP acted as legal advisor to Arsenal Capital.
About Arsenal Capital Partners
Arsenal Capital Partners is a leading New York-based private equity firm that invests in middle-market specialty industrial and healthcare companies. Arsenal makes investments in sectors where the firm has significant expertise and experience. Arsenal targets businesses that have the potential for further value creation by working closely with management to accelerate growth and leverage the firm’s operational improvement capabilities. Arsenal currently has over $1.4 billion of committed equity capital.