|FOR IMMEDIATE RELEASE||
ST LOUIS MO - February 17, 2017 - Accella Polyurethane Systems LLC (“Accella”) has agreed to purchase certain assets of the North American spray polyurethane foam (SPF) business from Covestro LLC. The sale is scheduled to be completed by April 1, 2017. Financial terms have not been disclosed.
“This acquisition will significantly improve Accella’s position in the spray polyurethane foam market and is another strategic step with our positive track record combining the best polyurethane based companies in the industry. The addition of a well-rounded product technology portfolio and a team of highly regarded industry experts will highly complement our current spray polyurethane foam business,” said Andy Harris, president and CEO of Accella. “Moving forward, Accella intends to focus on investing in and growing our spray foam business to meet the needs of our valued customers with the best people, products and service in the industry.”
Chris Brink, Accella’s VP of Polyurethane Systems, added “SPF is a very important area of business for our company with the value it brings to society. We will continue to raise the position of SPF as the preferred insulation choice in modern residential and commercial construction.”
John Televantos, Partner at Arsenal Capital, said, “This combination further strengthens Accella’s position as the leading independent Polyurethane systems house in North America, and will enhance the value Accella brings to market with expanded technology, leading brands and great people. We are committed to support the ongoing growth of Accella and invest in strategies that will further transform the business.”
The Covestro Spring, TX facility includes both commercial and production operations, serving North America as a leading producer of spray polyurethane foam, which is used as insulation and roofing in the construction of commercial buildings and residential homes. The roughly 40 Covestro employees at the Spring facility will make a great fit with the Accella team. Operations will continue at the current facility with “business as usual” for a smooth transition for all customers.
“The accomplishments of Covestro’s spray polyurethane foam team cannot be overstated. Both technically and commercially, their contributions have helped grow spray polyurethane foam as a technology in the construction market,” said Jerry MacCleary, president of Covestro LLC. “This divestiture will allow us to focus on our core raw materials business while ensuring our spray polyurethane foam employees can continue to shape the industry as a part of Accella.”
Accella is a leading manufacturer of custom formulated polyurethane systems, and polyurethane based recycled rubber products formed from the strategic combination of Dash Multi-Corp, MarChem, Arnco, Pathway Polymers, Ultimate Systems, RB Rubber, IPS Polymer Systems, Zeus, Premium Spray Products, Coating & Foam Solutions, Burtin Polymer Labs and Quadrant Spray Foam. The polyurethane business is focused on foams, binders, coatings, adhesives, sealants and elastomers. The recycled rubber products business manufactures recycled tire crumb, custom colored EPDM granules, custom and rolled matting, equine matting, athletic flooring, playground safety surfacing and various custom molded products, all based on Accella polyurethane technology. The company manufactures in eight production facilities across the United States, one in Europe and one in China. To learn more about Accella Performance Materials go to www.accellacorp.com.
About Arsenal Capital Partners
Established in 2000, Arsenal Capital Partners is a leading New York based private equity firm that specializes in investments in middle market specialty industrials and healthcare companies. Since inception, Arsenal has raised institutional equity investment funds of approximately $3 billion. Arsenal invests in industry sectors in which the firm has significant prior knowledge and experience and seeks companies typically in the range of $100-500mm initial enterprise value. The firm works with management teams to build strategically important companies with leading market positions, high growth, and high value-add. For additional information on Arsenal Capital Partners, please visit. www.arsenalcapital.com.