Arsenal is said to make 7x on $670 mln Accella sale

Arsenal Capital Partners stands to make 7x its money with the sale of Accella Performance Materials, a source said.

Carlisle Cos said Oct. 2 that it agreed to buy Accella from Arsenal for $670 million cash. Accella, Maryland Heights, Missouri, offers polyurethane products and services across markets and applications globally. The company produces about $430 million in annualized revenue; it operates out of 10 plants and seven R&D labs in the U.S., Germany and China.

Arsenal acquired Accella in 2012. At that time, the company was known as Dash Multi-Corp, a maker of formulated polyurethane, vinyl plastisol, specialty coatings and recycled rubber products. Dash rebranded as Accella in May 2014.

Accella has completed several acquisitions. This year, the portfolio company acquired the North American spray polyurethane foam business of Covestro LLC, and in 2016 it bought the spray foam division of Quadrant Urethane Technologies. In 2015, Accella gobbled up Premium Spray Products, Peach State Labs and IPS Polymer Systems in separate deals. Accella also bought, in 2014, Zeus Tyrefill Systems GmbH.

Arsenal’s investment in Accella came from its third fund, according to an FTC notice. Arsenal Capital Fund III LP closed on $875 million in April 2013. The firm is investing out of its fourth pool, which collected $1.3 billion in 2016.

Arsenal, New York, is a lower-middle-market private equity firm targeting deals in industrials and healthcare. The firm typically invests $100 million to $250 million equity per deal.

Accella is the third exit from Arsenal’s third fund. Earlier this year, Arsenal sold FlowChem to KMG Chemicals, reaping 4.3x its money with the deal. In August, the PE firm offloaded Certara to EQT, making 4.3x its investment.

Executives for Accella and Carlyle could not immediately be reached for comment.

Action Item: Call Andy Harris, Accella’s CEO, at +1 314-432-3200.

Correction: A prior version of this story incorrectly said that Carlyle Cos is the buyer. That is incorrect. It is Carlisle Cos. The story has been changed.

Worker sprays expandable foam insulation between wall studs. Photo courtesy of BanksPhotos/istock/Getty Images