Epsilyte Holdings LLC, a provider of expanded polystyrene based in The Woodlands, Texas, acquired Polysource Inc., a Piqua, Ohio-based EPS compounder and molder of building insulation products, safety helmet liners and filtration media.
The acquisition bolsters Epsilyte's green product offering and technical expertise, according to a news release about the deal between Balmoral Funds LLC, a Los Angeles-based private equity firm that owns Epsilyte, and Polysource, a privately held company founded in 1990.
Epsilyte is a Balmoral portfolio company that sells EPS materials to the packaging, insulating panels, cold chain and geo-foam markets.
Polysource manufactures color EPS resin and specialty EPS copolymers and provides molded EPS parts for child seat interiors, personal safety helmets, automotive packaging and parts for the construction industry. The acquired company has 90 employees serving customers in about 15 countries.
Terms of the deal were not disclosed.
Balmoral typically invests in companies with sales of $30 million to $500 million that require equity investments of $10 million to $60 million.
The firm will operate the merged companies as two business units: EPS, which is the heritage Epsilyte business, and Compounded EPS, which is mostly the heritage Polysource business, according to a news release.
"EPS is already a key enabler of carbon neutrality due to its almost unmatched insulative properties. This acquisition further strengthens our ability to enhance performance of our products through Polysource's unique and efficient extrusion technology enabling us to better serve customers with more sustainable products and true value creation," Epsilyte President and CEO Brad Crocker said in the release.
Erik Wehtje, a founding partner and Polysource chairman, will continue to advise on technical and commercial issues.
"[Wehtje] is truly an expert in the development, production and marketing of compounded EPS resin on a global basis, and I'm pleased to retain his knowledge and counsel as we move forward as a combined company," Crocker said.
Matthew Cox, who joined Polysource as president and CEO in 2017, will lead the Compounded EPS business unit and report to Crocker.
"Epsilyte brings the critical mass, functional competence and technical capabilities we needed to advance our business to the next level," Cox said in the release.