Arsenal Completes Carveout of Ferro’s Fine Chemicals Biz

Arsenal Capital Partners has completed its acquisition of the Fine Chemicals business of Ferro Corp. (NYSE: FOE). The deal was valued at $60 million, compared to the original announced price of $66 million. Arsenal has renamed the business Novolyte Technologies, and it will make electrolytes used in the manufacture of lithium ion batteries and other products.

 

PRESS RELEASE

Arsenal Capital Partners, a leading New York-based private equity firm that invests in middle-market specialty industrial, healthcare, and financial services companies, today announced that it has completed the acquisition of the U.S. portion of Ferro Corporation’s (NYSE: FOE) Fine Chemicals business, a leading manufacturer of electrolytes used in the manufacture of lithium ion batteries, as well as high performance intermediates for other key end products. The Fine Chemicals business was acquired for $60 million and has been renamed Novolyte Technologies.

 

Novolyte’s products include electrolytes and materials used for lithium batteries, ultracapacitors and other energy storage devices, solvents used in a variety of industrial processes and products, electronic materials, polymer ingredients, pharmaceutical and agricultural chemicals. The company’s products and technology solutions are an integral part in the emerging growth of lithium batteries for hybrid electric (HEV) and electric vehicles.

 

John Televantos, a Principal at Arsenal Capital, said, “We are pleased to add Novolyte to Arsenal’s portfolio of companies. Arsenal has had previous success building strong companies in the specialty chemicals sector and we look forward to leveraging the skills of our team of operating and financial professionals who will work closely with Novolyte’s management to capture global growth opportunities for this business.”

 

Timothy Zappala, an Arsenal Operating Partner, said, “The Novolyte business is developing novel materials for use in future power technologies and, with key manufacturing operations and marketing capabilities in China, Arsenal will leverage our presence in China to further develop markets in this region as well as globally. We look forward to partnering with the management team who have a strong competency in specialty chemicals and materials.”

 

Arsenal expects to complete the purchase of Ferro Corporation’s wholly-owned subsidiary Ferro (Suzhou) Energy Storage Materials Co. Ltd., which owns the Fine Chemicals Business’ manufacturing facilities in Suzhou, China, by the end of the year.

 

Equity financing for the transaction was provided from Arsenal Capital Partners’ $500 million Fund II. Senior debt financing was provided by National City, and mezzanine financing was provided by Greyrock Capital and Triangle 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.