|FOR IMMEDIATE RELEASE||
Chris Tofalli Public Relations, LLC
+1 914 834 4334
NEW YORK, January 31, 2011 – Arsenal Capital Partners, a leading New York-based private equity firm that invests in middle-market specialty industrial, healthcare, and financial services companies, announced today that its portfolio company Novolyte Technologies has completed the formation of a new joint venture with Foosung Co., Ltd., creating an integrated global producer of lithium-ion battery electrolytes, a key component in the rapidly growing market for lithium batteries used in hybrid electric vehicles and consumer electronics.
Novolyte, a portfolio company of Arsenal Capital, is a world leading manufacturer and supplier of specialty electrolyte materials for lithium ion battery and energy storage applications, high performance solvents and other specialty chemicals. Foosung Co., Ltd., is a leading global producer of specialty lithium salts for lithium batteries. The new U.S.-based joint venture entity retains the Novolyte Technologies name and will be managed by Novolyte's current management team from its existing Cleveland headquarters.
John Televantos, a Partner at Arsenal Capital, said, “Clean Technology is a key part of Arsenal’s investment focus in the specialty industrials sector and we believe that certain segments of Cleantech will grow at multiples of GDP. “Our investment in Novolyte and the creation of this exciting new joint venture reinforces Arsenal’s commitment to CleanTech and positions Novolyte Technologies to be the leading global supplier of lithium battery electrolytes. We look forward to our strategic partnership with Foosung and look forward to identifying further investments in Cleantech.”
In addition to supplying technology to Novolyte, Foosung will invest approximately $30 million in the joint venture and contribute a future lithium salt plant. Novolyte is contributing its energy storage business to the joint venture. Arsenal continues ownership of Novolyte’s remaining solvents, phosphines, and custom manufacturing businesses which is now Novolyte Performance Materials, LLC.
“Novolyte is the only electrolyte business with a global manufacturing base having operations and technology centers in both North America and Asia. We are now the first global electrolyte producer that is backward integrated,” said Edward Frindt, Novolyte’s CEO. “This Joint Venture with Foosung enables us to better serve our customers worldwide with leading electrolyte technologies and a more efficient supply chain.”
Novolyte is the leading producer of primary (non-rechargeable) and secondary (rechargeable) Lithium electrolyte materials in North America, Europe and Greater China and a leading provider of electrolyte and ultracapacitor solutions worldwide. Novolyte serves its global customer base through its manufacturing facilities in Baton Rouge, Louisiana, and Suzhou, China under the Purolyte® brand. Novolyte supports its high-purity formulation capabilities and proprietary technology to offer cost-effective and high-performance electrolyte solutions, from its U.S. and China-based technical centers. The business serves a broad range of end-use products requiring highly functional electrolytes such as consumer electronics, telecommunications, military, medical, aerospace, ultracapacitors, grid storage and electric vehicles.
Novolyte received in 2009 a $20.6 million award in stimulus funds for expansion in the US from the Department of Energy under the Recovery Act - Electric Drive Vehicle Battery and Component Manufacturing Initiative, as well as $1.12 million in Ohio Third Frontier funding in collaboration with the Great Lakes Energy Institute at Case Western Reserve University to develop and commercialize advanced electrolyte materials for next-generation Lithium-ion batteries. Both of these awards will be contributed to the joint venture.