HOUSTON (Jan. 5, 12:40 p.m. ET) — New York private equity firm Arsenal Capital Partners has bought a majority stake in plastic barrier treatment maker Fluoro-Seal Holdings LLC for an undisclosed price.
In a Jan. 4 news release, Arsenal partner John Televantos said that the acquisition “builds on Arsenal's portfolio and established expertise in the specialty chemicals and materials sectors.”
Houston-based Fluoro-Seal operates 15 plants in the U.S. and another seven internationally through joint ventures or licenses. The 29-year-old firm provides barrier treatment for plastic bottles, containers and fuel tanks, as well as performing surface modifications. It also supplies surface-modified polymer particles and fibers. Fluoro-Seal's products and services are sold into a wide array of markets including agricultural, automotive and pharmaceutical.
In the release, Fluoro-Seal co-founders Bill Brown and Monty Ballard said they believe that Arsenal “is uniquely capable of supporting our company's growth in existing and new markets in the U.S. and also globally.”
Televantos told Buyouts magazine in a Jan. 4 article that Arsenal is paying between $30 million and $60 million for its stake in Fluoro-Seal. The sale price represents a pretax earnings multiple of 6-8, he said in the article.
For Arsenal, it's the firm's first plastics deal since it sold plasticizer maker Genovique Specialties to Eastman Chemical Co. in 2010. Arsenal's investment portfolio is valued at more than $800 million.