Little Rock, Ark.-based private investment firm Arcane Capital Partners is spending more than $100 million to buy Gainesville, Texas-based conduit manufacturer Petroflex North America and Wichita, Kan.-based injection molder Wescon Plastics LLC.
"We're entering an exciting phase of growth," Michael Hickmon, Arcane's managing partner and CEO, told Plastics News in an emailed statement. "We're moving forward at full throttle, with substantial investments planned for our valued customers, existing operations and strategic acquisitions."
Arcane has invested $200 million in acquisitions during the past two years, Hickmon said. It has also acquired five companies since December 2021, including Prairie Grove, Ark.-based injection molder and extruder Poly-Tech Plastic Molding Inc.
"We've added significant manufacturing experience to our team, increased production capacity and in-house recycling capabilities while also broadening our geographic footprint," Hickmon said in Jan. 16 news release. "I am proud of what our team has accomplished in moving our business forward and grateful for the partnerships we have created through this process."
There are no plans for leadership changes at either facility.
"The leadership of both facilities is highly experienced and engaged with their teams and community," Hickmon told PN. "We believe in the current management and seek to support them as we grow these companies together."
Petroflex was No. 60 in the most recent PN ranking of North American pipe, profile and tubing companies with $61.7 million in sales.
Before the acquisition, high density polyethylene extruder Petroflex was owned by Transition Capital Partners. Investment banking firm Stout and Mount Vernon Capital, LLC advised Arcane on the transaction.
JPMorgan Chase & Co. provided bank financing through syndication with PNC Financial Services and Regions Financial Corporation, the release said. Additional transaction financing was provided by Aventurine Partners in the form of preferred equity.
Markus Specks, partner and CEO at Aventurine, will join Arcane's board of directors
"We're excited to partner with Arcane in a shared vision to decarbonize established industrial sectors," Specks said. "The Arcane family of companies manufactures key products that contribute to renewable power proliferation and utility grid upgrades. Additionally, in-house recycling operations deliver measurable decarbonization today, pairing several of our core investment theses."
Petroflex manufactures continuous length HDPE conduit and accessories made from recycled content for the electric utility, wind and solar energy, irrigation, telecommunications and data industries.
Wescon Plastics specializes in prototyping and injection molding tight tolerance products for the energy, heavy equipment, electrical, batteries, HVAC and RV markets.