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CPS Performance Materials Group Acquires GEO Specialty Chemicals

September 3, 2019

BOUND BROOK, NEW JERSEY, September 3, 2019 – CPS Performance Materials (“CPS”), a diversified specialty chemicals manufacturer of performance polymers, fine chemical and chemical illumination solutions, announced today the acquisition of GEO Specialty Chemicals (“GEO”).  CPS is a portfolio company of Arsenal Capital Partners (“Arsenal”).  The terms of the acquisition were not disclosed. 

GEO is a diverse supplier of specialty chemicals and materials to the coatings, adhesives, medical, water treatment and construction markets.  The company operates in three divisions – Paints & Coatings, Water Treatment and Specialty & Construction - with leading positions in its primary chemistries from 19 production sites in the U.S. and Europe. 

In the recent past, GEO has undertaken a number of expansions to increase its presence in the attractive markets of materials for contact lenses, additives for oil and gas drilling, and municipal and industrial water treatment.  This builds upon GEO’s already strong position in methacrylate chemistry where it is a leading supplier to the global coatings and adhesives markets.  GEO is also the largest U.S. producer of glycine, a key amino acid used in a variety of nutrition and personal care products. 

Jeremy Steinfink, President and CEO of CPS, said, “GEO significantly adds to the scale of CPS and positions us well in a number of growing end markets.  Our strategy will focus on investing in GEO’s businesses which complement many of CPS’s existing positions in attractive end markets such as CASE additives, specialty chemicals for pharma and medical uses, nutrition, personal care and a wide range of industrial applications.  We see opportunities to expand across the portfolio where we can leverage our chemical expertise and continue to be a reliable commerical partner.”

Ken Ghazey, CEO of GEO who will join the Board of Directors of CPS, said, “CPS is a great fit for our employees and business partners.  I look forward to working with Arsenal and the CPS team to continue to build the platform.”

Sal Gagliardo, an Operating Partner of Arsenal and the Chairman of CPS, commented, “The addition of GEO to CPS builds on our strategy to expand the breadth of our specialty chemicals platform with highly complementary capabilities and resources.  The acquisition strengthens CPS’s technology offerings to both GEO’s and CPS’s customers and positions CPS for significant growth.  We are delighted to have the GEO team join CPS.”

The Valence Group acted as financial advisor to Arsenal and CPS.

About GEO Specialty Chemicals

Founded in 1993, GEO has grown through strategic acquisition and commitment to niche markets to become a leading supplier of specialty chemicals.  GEO currently manufactures over 300 products for a broad customer base of more than 1,000.  GEO markets include: water treatment; coating and resin additives; specialty acrylic monomers; consumer additives; plus a broad range of dispersants, surfactants, and other additives for the concrete admixtures, synthetic rubber polymerization, gypsum processing and oil well drilling markets.  Visit http://www.geosc.com.

About CPS Performance Materials

CPS Performance Materials is a diversified specialty chemicals manufacturer of coatings additives, pharmaceutical intermediates and API’s, chemical illumination solutions, performance polymers, and fine chemicals and intermediates.  For more information visit: www.cpsperformancematerials.com.

About Arsenal Capital Partners

Arsenal is a leading private equity firm that specializes in investments in middle-market specialty industrials and healthcare companies.  Since its inception in 2000, Arsenal has raised institutional equity investment funds of $5.3 billion, completed 45 platform investments, and achieved 30 realizations.  Arsenal invests in industry sectors in which the firm has significant prior knowledge and experience and seeks companies typically in the range of $100 million to $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.

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