|FOR IMMEDIATE RELEASE||
Chris Tofalli Public Relations, LLC
+1 914 834 4334
NEW YORK, February 28, 2005- Arsenal Capital Partners, a private equity firm that invests in middle market manufacturing and service companies, today announced it has acquired Sermatech International, a leading provider of engineered coatings and repair services, from Teleflex Incorporated (NYSE: TFX). Terms of the transaction were not disclosed.
Headquartered in Limerick, PA, Sermatech is a leading provider of engineered coatings, special processes and component repair services to Original Equipment Manufacturers and Tier 1 suppliers in the aerospace, industrial gas turbine, defense, oil & gas and other general industrial markets. The company is the leading independent supplier of high performance slurry coatings, which are used to protect key components against oxidation, wear, corrosion and fouling, and enhance their performance as well as extend their lives. Sermatech also has growing positions in the thermal spray, diffusion and polymer coatings markets. Founded in 1963, Sermatech is synonymous with quality and performance and is trusted by its customers for use with their critical components.
"We continue to actively pursue investments in specialty materials and chemicals businesses which we understand and where we can add value," said Barry Siadat, an Arsenal Managing Director. "We have a demonstrated ability to carve out non-core businesses of large companies and create strong, independent organizations that can perform consistently well over time. We will work closely with the Sermatech team to capitalize on the many opportunities that exist to enhance the company's growth and profitability."
Bill Wilkins, Sermatech's President, said, "Arsenal brings the experience and resources necessary for Sermatech to take advantage of the significant growth opportunities available to our business today. With Arsenal's support, we will accelerate Sermatech's growth by strengthening our partnerships with existing customers and making sound investments in high-value product development and new market applications. Together we will strive to build upon the company's solid foundation and longstanding reputation for quality and service to be the "supplier of choice" to customers in our end markets."
The Sermatech investment will be Arsenal's seventh portfolio company. In addition, Sermatech will be Arsenal's fourth carve-out of a non-core business from a publicly-owned company, joining Scientific Protein Laboratories, a leading supplier of active pharmaceutical ingredients, acquired in 2004 from Wyeth (NYSE: WYE); Rutherford Chemicals, a niche provider of over 450 fine and specialty chemicals, acquired in 2003 from Cambrex Corporation (NYSE: CBM); and, Renaissance Mark, one of the largest North American providers of prime labels and brand imaging solutions to the packaging industry, acquired in 2002 from Cenveo Inc. (NYSE: CVO).
Arsenal Capital Partners is a New York-based private equity firm that makes control investments in specialty manufacturing and service companies. Arsenal invests where it has substantial prior experience as well as broad operating and functional expertise that can support management teams to drive growth and improve productivity. Arsenal targets specialty manufacturing, specialty chemicals and healthcare companies that can grow in excess of GDP and have leadership positions in niche markets. The firm currently has $300 million of committed equity capital.
# # #