|FOR IMMEDIATE RELEASE||
Chris Tofalli Public Relations, LLC
+1 914 834 4334
NEW YORK, November 15, 2006 - Arsenal Capital Partners, a private equity firm that employs a sector-focused and operational improvement approach to creating value with niche manufacturing and service sector companies in the lower middle market, announced today that it has successfully closed its second fund, Arsenal Capital Partners II LP, at $500 million of committed capital. Investor demand for the fund well exceeded both the $400 million target and the $500 million hard cap that the principals of Arsenal had set prior to fundraising.
The fundraising process took approximately nine months to complete. Including its first fund, closed in 2003, Arsenal now manages a total pool of capital of $800 million.
Terrence Mullen, Managing Director of Arsenal Capital Partners said, "Fund II exceeded our expectations, with strong support and increased commitments from Fund I investors complemented by excellent demand from a mix of U.S. and international institutions that are new investors with us. Approximately 65% of Fund II investors are U.S.-based and 35% are international, with a nice balance of endowments and foundations, pension funds, financial institutions, universities, and investment funds."
"We believe this investor support is a strong endorsement of our focused and disciplined investment model of targeting businesses in sectors where we have prior investment and operating experience, and utilizing a team with diverse skill sets to work closely with portfolio company management teams to drive long term growth and value creation initiatives," said Mr. Mullen. The Arsenal Capital Partners team is a talented group of 23 professionals, led by two Co-Founders, Terrence Mullen and Jeffrey Kovach, and two additional Managing Directors, James Marden and Barry Siadat.
In Fund II, Arsenal will continue to target companies with enterprise values in the range of $50 - 250 million and EBITDA of $10 - 50 million where it believes it can demonstrate its differentiated approach to investing and adding value. According to Mr. Mullen, "We are actively evaluating a number of potential investments for Fund II and look forward to completing those transactions over the course of the next several months." Arsenal's investment focus areas will also remain consistent, which is to invest in niche market leading specialty products and specialty services businesses in segments of healthcare, specialty chemicals, aerospace/defense, specialty components, business services, and distribution/logistics.
"Our team has worked over the past several years to create strong and profitable companies that we believe have tremendous value. We will be working over the next six to twelve months to monetize a number of our investments to deliver additional returns to our investors," Mr. Mullen added. Arsenal's current investments include Interdynamics, a leading manufacturer of niche products for the automotive aftermarket; Leis Medical, a provider of orthopedic implants and instrumentation servicing medical original equipment manufacturers; Priority Solutions, a non-asset based specialty distributor serving pharmaceutical and other mission critical industries; Renaissance Mark, a leading manufacturer of printed labels serving the food, beverage, health and beauty aids markets; Sermatech International, a leading provider of engineered coatings, special processes and component repair services; TallyGenicom, a leading manufacturer of printers and printer consumables; Velsicol, a leading global manufacturer of high performance specialty chemicals; and Vertellus Specialties, a specialty chemicals company focused on the manufacture of high growth, high value products for the agriculture, nutrition, pharmaceutical, personal care, and performance materials markets.
Other recent milestones in addition to completing Fund II include Arsenal's sale of portfolio company Scientific Protein Laboratories LLC, and the creation of Vertellus Specialties with the combination of two of its portfolio companies, Rutherford Chemicals and Reilly Industries.
Arsenal Capital Partners invests in specialty product and services companies in industries where it has substantial prior experience and expertise and can support management teams to drive growth and improve productivity. Arsenal focuses on growing, niche markets including healthcare, specialty chemicals, aerospace/defense, specialty components, business services, and distribution/logistics. For additional information please visit www.arsenalcapital.com.