|FOR IMMEDIATE RELEASE||
Chris Tofalli Public Relations, LLC
+1 914 834 4334
NEW YORK, October 11, 2005 - Arsenal Capital Partners, a New York-based private equity firm that invests in middle-market manufacturing and service companies, announced today the acquisition of Velsicol Chemical Corporation (.Velsicol.), a Chicago-based manufacturer of specialty chemicals. The transaction value was not disclosed. This marks the third transaction completed by Arsenal in the past three weeks.
Velsicol is the world's largest producer of hexachlorocyclopentadiene and its derivatives used in agrochemicals and fire retardants. In addition, Velsicol is a leading global manufacturer of non-phthalate polymer additives used in a wide variety of applications, and food preservatives used in snacks and carbonated beverages. Velsicol operates four manufacturing facilities in the United States and Europe.
Barry Siadat, Managing Director of Arsenal Capital Partners, said, "Velsicol is known for its technical expertise, customer service, leadership in specialized technology, and its strong commitment to being a responsible member of the chemical industry and the communities in which it operates. We look forward to working with Velsicol's management to co ntinue to grow the business."
"We are excited and pleased to become a member of the Arsenal Capital family of companies," said Arthur R. Sigel, President and Chief Executive Officer for Velsicol. "Velsicol is a technology company with a reputation around the world for building strong partnerships with its customers. Arsenal's resources will help us to enhance those partnerships through increased focus on and investment in technical innovation and product line growth."
Arsenal Capital Partners has previously made investments in the specialty chemicals and related industrial sectors, including Reilly Industries, a manufacturer of specialty chemicals; Rutherford Chemicals, a producer of fine and specialty chemicals; Scientific Protein Laboratories, a manufacturer and developer of active pharmaceutical ingredients; Sermatech International, a provider of engineered coatings to the aerospace/defense and power generation markets; and Interdynamics, a value-added packager of chemicals for the automotive aftermarket.
Equity financing for the transaction was provided from Arsenal Capital Partners' $300 million fund. Debt financing for the transaction was provided by D.B. Zwirn & Co., L.P.
Arsenal Capital Partners invests in specialty product and specialty services companies in industries where it has substantial prior experience and expertise that can support management teams to drive growth and improve productivity. Arsenal focuses on growing, niche markets within the healthcare and specialty industrial sectors, including specialty chemicals, aerospace/defense, pharmaceuticals, specialty components and distribution/logistics. For additional information please visit www.arsenalcapital.com.