Arsenal Capital Partners has completed its previously-announced sale of Genovique Specialties Corp., a Rosemont, Ill.-based provider of benzoate plasticizers, to Eastman Chemical Co. (NYSE: EMN). No financial terms were disclosed.
Arsenal Capital Partners, a leading New York-based private equity firm that invests in middle market specialty industrial, healthcare and financial services companies, continued its significant momentum in 2010 with the completion of its previously announced sale of portfolio company Genovique Specialties Corporation, a leading global provider of benzoate plasticizers, to Eastman Chemical Company (NYSE: EMN).
Tim Zappala, Chairman of Genovique, and a Partner of Arsenal Capital who co-heads the firm’s specialty chemicals and materials practice, said: “We were very pleased to have worked with CEO Ross McMillan and his management team to grow the business over the past several years. During our partnership we successfully established Genovique as an independent company focused on high growth product lines with a particular emphasis on the non-phthalate plasticizers that are more environmentally sound products and are increasingly more desirable by its global customers.”
“This was a classic investment for Arsenal’s robust specialty chemicals practice and given the tremendous interest in the company we are pleased that Ross and our partners selected Eastman to support the continued growth of Genovique. This transaction aligns with Eastman’s growth goals and we are confident that their management will implement new and innovative strategies and utilize their global distribution network to further build the company,” added John Televantos, a Partner at Arsenal.
To build Genovique, Arsenal acquired Velsicol Chemical Corporation in 2005 and since that time separated portions of its product lines into discreet niche businesses. The business unit which manufactures benzoic acid, sodium benzoate and specialty plasticizers that are performance based solutions for the Adhesives & Sealants, Coatings, and PVC markets was re-branded in 2007 as Genovique Specialties. Arsenal continues its ownership of Velsicol, a manufacturer of chemical intermediates used in applications such as agrochemicals, as a portfolio company of Arsenal Capital Partners Fund I.
Arsenal has been active in the first several months of 2010, making a significant equity investment in March in FrontStream Payments, Inc., a leading provider of innovative payment processing solutions. Arsenal strengthened its investment team with the promotions of Eugene Gorbach to Vice President and Roy Seroussi to Senior Associate.
The sale of Genovique represents a successful exit in the specialty chemicals sector following the sale of Vertellus Specialties, a leading provider of specialty chemicals for the agriculture, nutrition, pharmaceutical, personal care, and performance materials markets, in 2007. Arsenal’s current investments in the specialty chemicals sector include Velsicol Chemical, a leading global manufacturer of high performance chemicals used in agriculture and industrial applications and Novolyte Technologies, a leading manufacturer of specialty electrolyte materials for lithium ion battery and energy storage applications and a variety of other technically demanding custom manufactured products for the electronics, pharmaceutical and industrial markets. “The specialty chemicals sector is one of our key focus areas and we will continue to pursue opportunities with niche capabilities and positive end market trends,” said Jeff Kovach, managing director of Arsenal Capital.
About Arsenal Capital Partners
Arsenal Capital Partners is a New York-based private equity firm that makes investments in specialty industrial, healthcare and financial services companies. Arsenal makes investments in sectors where the firm has prior knowledge and experience, and 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 $800 million of committed equity capital. For additional information on Arsenal Capital Partners please visit www.arsenalcapital.com.