| Arsenal Capital Partners
is an industry-focused buyout firm that invests in products and
services companies. Arsenal's target transaction size is $50 million
to $400 million in enterprise value. We invest in niche industry
sectors where we have prior experience, and where our operating
resources can help facilitate incremental growth and margin improvement.
In general, we are seeking leading players in niche markets with
strong management teams and competitive advantages created by differentiated
products or services. Typically, this means the companies we target
have relatively high margins, generate good cash flow, and enjoy
defensible market positions.
Investing in industry sectors where we have
prior investment and operating experience has several benefits.
First, we can move quickly to identify both issues and opportunities,
which enhance our speed and certainty as a buyer. Second,
having this experience allows us to develop a good rapport
with management teams by elevating the level of discussion
related to their businesses. Third, by having access to industry-knowledgeable
resources that can positively impact business performance,
the overall value to a seller can be maximized through enhanced
equity rollover appreciation.
More specifically, we are looking to acquire products and
services companies in the following end markets: |
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Specialty & Fine Chemicals |
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Segments of Healthcare |
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Transportation and Logistics |
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Power Generation |
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Aerospace & Defense |
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Process Industry Components and Services |
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Financial Services |
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| Arsenal invests in well-run companies as well
as more complicated deals, special situations, or companies
that are experiencing some performance issues. While we are
receptive to evaluating “underperforming” companies,
we do not pursue deep turnarounds. We also avoid companies that
rely on high levels of technology. |
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| Maximize Value To Sellers |
| Arsenal is prepared to pay market
prices and also acquire less than 100% of the equity, enabling
a seller or management team to retain equity in order to maximize
value over the long term. With our value-added resources, this
retained equity can appreciate significantly on the next exit
realization. |
For additional information on our investment parameters or potential
new investments, please contact Jeff Kovach at (212) 771-1717 or
jkovach@arsenalcapital.com |