NEW YORK, October 22, 2018 - Arsenal Capital Partners ("Arsenal"), a leading private equity firm that invests in middle-market specialty industrials and healthcare services companies, announced today the acquisition of Polytek Development Corp. ("Polytek"), a leading manufacturer of liquid mold rubbers and casting plastics, from Morgenthaler Private Equity. The terms of the acquisition were not disclosed.
Polytek's proprietary specialty polymers are used by customers to create flexible molds to reproduce highly-detailed, complex objects for a variety of industrial and consumer applications, including concrete casting, special effects, tooling, sculpture, and prototyping.
Arsenal brings significant experience investing in the global polymers market, having previously built Accella Performance Materials, a polyurethanes systems company, through nine strategic acquisitions, and Elite Comfort Solutions, a leading manufacturer of specialty polyurethane foam technologies serving the bedding market.
Roy Seroussi, an Investment Partner at Arsenal said, "Polytek has developed niche technologies in a number of applications, with a strong reputation of innovation and technical support. The company's portfolio fits well with Arsenal's previous expertise in polymer technologies, such as in polyurethanes, silicones, and epoxies, where we have successfully invested in the past. We look forward to partnering with Polytek and its employees and to accelerating Polytek's growth plans by delivering more solutions and capabilities to its customers."
Don Nolan, Chair of Polytek's board, added, "We are delighted to partner with Jonathan Kane and his team. Polytek has a track record of successfully acquiring and integrating complementary technologies and product lines focused on its key markets. We will continue the trajectory of acquiring high-value polymer solutions and expect robust acquisition activity over the next few years."
Jonathan Kane, CEO of Polytek, said, "The team at Polytek and I are excited to partner with Arsenal. Their deep experience in specialty chemicals and their operating model will bring tremendous value to Polytek, its customers, and its employees, and accelerate our plans for growth."
Genesis Capital, LLC acted as financial advisor to Arsenal.
About Polytek Development Corp.
Founded in 1984 and headquartered in Easton, PA, Polytek® Development Corp. is a leading manufacturer of specialty polymers including: polyurethane elastomers and casting resins, silicones, epoxies, and latex. These systems are used primarily in mold making and casting applications in industrial, construction, entertainment, fine arts, and technology sectors. For more information, visit https://www.polytek.com.
About Arsenal Capital Partners
Established in 2000, Arsenal is a leading private equity firm that specializes in investments in middle-market specialty industrials and healthcare business services 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 - $500 million of 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 more information, visit www.arsenalcapital.com.