Mergers & Acquisitions
August 16, 2022
Arsenal Closes on Two New Funds
Arsenal Capital Partners Announces Final Closes of Two New Funds Totaling $5.4 Billion Fund VI Closes with $4.3 Billion and Surpasses $3.0 Billion Target Inaugural Growth Fund Closes at its Hard Cap with $1.1 Billion and Surpasses $750 Million Target
New York, August 15, 2022 – Arsenal Capital Partners (“Arsenal”), a leading private equity firm that specializes in investments in industrial growth and healthcare companies, announced today that it has completed fundraising for two new funds, totaling $5.4 billion in capital commitments. Arsenal Capital Partners VI LP (together with its parallel funds, “Fund VI”) closed with $4.3 billion in capital commitments, well exceeding its $3.0 billion target of limited partner commitments and well above the size of its $2.4 billion predecessor fund. In addition, Arsenal Capital Partners Growth LP (together with its parallel funds, the “Growth Fund”) closed with $1.1 billion in capital commitments at its hard cap and exceeded its $750 million target of limited partner commitments.
“We are extremely grateful for the support from and relationships with our long-time investors,“ said Terry Mullen, Managing Partner of Arsenal. “We achieved a gratifying, high re-up rate from our existing institutional investors, who on average increased their commitments by 59% from the previous fund, and we are delighted to have attracted an exceptional group of new investors that will further bolster our market-leading institution.”
Over its 22-year history, Arsenal has built a leading private equity institution with two market-leading franchises in the industrials and healthcare sectors. Within its two focus sectors, Arsenal aims to create highly valuable, technology- and innovation-rich, growth companies that are strategically important to their markets. Arsenal’s team of more than 85 professionals and 55 senior advisors combines specialized investment, industry, and operating expertise into one integrated and balanced team to provide differentiated strategic insights, combine diverse perspectives, and leverage expert capabilities.
“The success of these fundraises reflects the strength of our market-leading franchises and our track record of building strategically valuable businesses. We and our investors see exciting opportunities to invest in technology- and innovation-rich companies in the industrial and healthcare sectors,” commented Jeff Kovach, Managing Partner of Arsenal. “Moreover, investors have acknowledged the depth of our domain and technical expertise that provides Arsenal the access, relevance, and credibility to compete and win in our target markets.”
Fund VI will focus on investments in industrials and healthcare businesses with proven technologies and solutions positioned to deliver high performance and value-add to their customers. The Growth Fund will execute a similar strategy in the same markets but pursue investments in next generation, emerging technology businesses poised to apply innovation to generate very high growth. In both of these funds, Arsenal will apply its high-impact company building capabilities to help businesses achieve significant organic growth and facilitate strategic acquisitions to extend their offerings and to solidify leadership positions in their respective markets.
Patricia Grad, Partner and Head of Investor Relations of Arsenal, added, “We are grateful for this global group of institutions and individuals who have supported our firm and greatly appreciate the collaborative dialogue that we had with them as we crafted these investment opportunities, particularly our debut Growth Fund. We look forward to deepening and strengthening our partnerships with our investors for years to come.”
Fund VI and the Growth Fund’s investor base is comprised of leading public and corporate pension plans, family offices, endowments and foundations, and financial institutions, including The University of California’s Office of the Chief Investment Officer (UC Investments), California State Teachers’ Retirement System, California Public Employees’ Retirement Systems, affiliates of APG Asset Management, The Oregon Public Employees Retirement Fund, affiliates of IIP A/S, and Minnesota State Investment Board. Kirkland & Ellis LLP served as legal counsel for Arsenal, Fund VI, and the Growth Fund.
About Arsenal Capital Partners Arsenal Capital Partners is a leading private equity firm that specializes in investments in industrial growth and healthcare companies. Since its inception in 2000, Arsenal has raised institutional equity investment funds totaling over $10 billion, completed more than 250 platform and add-on acquisitions, and achieved more than 30 realizations. The firm works with management teams to build strategically important companies with leading market positions, high growth, and high value-add. For additional information, please visit www.arsenalcapital.com.
Contact: Jackie Schofield at Prosek Partners Pro-Arsenal@prosek.com
August 16, 2022
Arsenal Closes on Two New Funds
Arsenal Capital Partners Announces Final Closes of Two New Funds Totaling $5.4 Billion Fund VI Closes with $4.3 Billion and Surpasses $3.0 Billion Target Inaugural Growth Fund Closes at its Hard Cap with $1.1 Billion and Surpasses $750 Million Target
New York, August 15, 2022 – Arsenal Capital Partners (“Arsenal”), a leading private equity firm that specializes in investments in industrial growth and healthcare companies, announced today that it has completed fundraising for two new funds, totaling $5.4 billion in capital commitments. Arsenal Capital Partners VI LP (together with its parallel funds, “Fund VI”) closed with $4.3 billion in capital commitments, well exceeding its $3.0 billion target of limited partner commitments and well above the size of its $2.4 billion predecessor fund. In addition, Arsenal Capital Partners Growth LP (together with its parallel funds, the “Growth Fund”) closed with $1.1 billion in capital commitments at its hard cap and exceeded its $750 million target of limited partner commitments.
“We are extremely grateful for the support from and relationships with our long-time investors,“ said Terry Mullen, Managing Partner of Arsenal. “We achieved a gratifying, high re-up rate from our existing institutional investors, who on average increased their commitments by 59% from the previous fund, and we are delighted to have attracted an exceptional group of new investors that will further bolster our market-leading institution.”
Over its 22-year history, Arsenal has built a leading private equity institution with two market-leading franchises in the industrials and healthcare sectors. Within its two focus sectors, Arsenal aims to create highly valuable, technology- and innovation-rich, growth companies that are strategically important to their markets. Arsenal’s team of more than 85 professionals and 55 senior advisors combines specialized investment, industry, and operating expertise into one integrated and balanced team to provide differentiated strategic insights, combine diverse perspectives, and leverage expert capabilities.
“The success of these fundraises reflects the strength of our market-leading franchises and our track record of building strategically valuable businesses. We and our investors see exciting opportunities to invest in technology- and innovation-rich companies in the industrial and healthcare sectors,” commented Jeff Kovach, Managing Partner of Arsenal. “Moreover, investors have acknowledged the depth of our domain and technical expertise that provides Arsenal the access, relevance, and credibility to compete and win in our target markets.”
Fund VI will focus on investments in industrials and healthcare businesses with proven technologies and solutions positioned to deliver high performance and value-add to their customers. The Growth Fund will execute a similar strategy in the same markets but pursue investments in next generation, emerging technology businesses poised to apply innovation to generate very high growth. In both of these funds, Arsenal will apply its high-impact company building capabilities to help businesses achieve significant organic growth and facilitate strategic acquisitions to extend their offerings and to solidify leadership positions in their respective markets.
Patricia Grad, Partner and Head of Investor Relations of Arsenal, added, “We are grateful for this global group of institutions and individuals who have supported our firm and greatly appreciate the collaborative dialogue that we had with them as we crafted these investment opportunities, particularly our debut Growth Fund. We look forward to deepening and strengthening our partnerships with our investors for years to come.”
Fund VI and the Growth Fund’s investor base is comprised of leading public and corporate pension plans, family offices, endowments and foundations, and financial institutions, including The University of California’s Office of the Chief Investment Officer (UC Investments), California State Teachers’ Retirement System, California Public Employees’ Retirement Systems, affiliates of APG Asset Management, The Oregon Public Employees Retirement Fund, affiliates of IIP A/S, and Minnesota State Investment Board. Kirkland & Ellis LLP served as legal counsel for Arsenal, Fund VI, and the Growth Fund.
About Arsenal Capital Partners Arsenal Capital Partners is a leading private equity firm that specializes in investments in industrial growth and healthcare companies. Since its inception in 2000, Arsenal has raised institutional equity investment funds totaling over $10 billion, completed more than 250 platform and add-on acquisitions, and achieved more than 30 realizations. The firm works with management teams to build strategically important companies with leading market positions, high growth, and high value-add. For additional information, please visit www.arsenalcapital.com.
Contact: Jackie Schofield at Prosek Partners Pro-Arsenal@prosek.com
August 9, 2022
Huntsman Divests Textile Effects
Huntsman Announces Agreement to Sell Textile Effects Division
Download as PDF August 09, 2022 6:00am EDT
THE WOODLANDS, Texas, Aug. 9, 2022 /PRNewswire/ — Huntsman Corporation (NYSE: HUN) today announced it has entered into a definitive agreement to sell its Textile Effects division to Archroma, a portfolio company of SK Capital Partners. The total enterprise value of the transaction is approximately $718 million, which includes the assumption of approximately $125 million in net underfunded pension liabilities as of December 31, 2021. The acquisition is being partially funded with preferred equity, of which Huntsman is taking up to $80 million, an amount SK Capital Partners will seek to syndicate prior to the transaction closing.
Over the last twelve months ending June 30, 2022, the Textile Effects division reported sales of $772 million and adjusted EBITDA of $94 million. Huntsman anticipates cash taxes on the transaction of approximately $50 million. Huntsman intends to report Textile Effects as discontinued operations beginning in the third quarter of 2022. The transaction is subject to regulatory approvals and other customary closing conditions and is expected to close in the first half of 2023.
Peter Huntsman, Chairman, President, and CEO commented:
“Over the past seven months, we have conducted a comprehensive strategic review of our Textile Effects division, including detailed discussions with a wide range of relevant parties. After evaluating several different options and thoroughly reviewing prospective offers for the business, our Board of Directors decided that SK Capital would be a better owner of the business over the long-term than Huntsman and that the value they offered was in the best interests of our shareholders. After closing, Textile Effects will combine with SK Capital’s Archroma business to create a world leader in textile chemicals and dyes, with a leadership in sustainability and innovation.
“We expect the cash proceeds from this divestiture to be deployed in-line with our current balanced capital allocation program which includes strategic investments and acquisitions to further strengthen our core businesses as well as returning cash to shareholders through both our dividend and share repurchase program.”
BofA Securities is serving as Huntsman’s financial advisor and Kirkland & Ellis LLP is acting as its legal advisor.
August 9, 2022
Huntsman Divests Textile Effects
Huntsman Announces Agreement to Sell Textile Effects Division
Download as PDF August 09, 2022 6:00am EDT
THE WOODLANDS, Texas, Aug. 9, 2022 /PRNewswire/ — Huntsman Corporation (NYSE: HUN) today announced it has entered into a definitive agreement to sell its Textile Effects division to Archroma, a portfolio company of SK Capital Partners. The total enterprise value of the transaction is approximately $718 million, which includes the assumption of approximately $125 million in net underfunded pension liabilities as of December 31, 2021. The acquisition is being partially funded with preferred equity, of which Huntsman is taking up to $80 million, an amount SK Capital Partners will seek to syndicate prior to the transaction closing.
Over the last twelve months ending June 30, 2022, the Textile Effects division reported sales of $772 million and adjusted EBITDA of $94 million. Huntsman anticipates cash taxes on the transaction of approximately $50 million. Huntsman intends to report Textile Effects as discontinued operations beginning in the third quarter of 2022. The transaction is subject to regulatory approvals and other customary closing conditions and is expected to close in the first half of 2023.
Peter Huntsman, Chairman, President, and CEO commented:
“Over the past seven months, we have conducted a comprehensive strategic review of our Textile Effects division, including detailed discussions with a wide range of relevant parties. After evaluating several different options and thoroughly reviewing prospective offers for the business, our Board of Directors decided that SK Capital would be a better owner of the business over the long-term than Huntsman and that the value they offered was in the best interests of our shareholders. After closing, Textile Effects will combine with SK Capital’s Archroma business to create a world leader in textile chemicals and dyes, with a leadership in sustainability and innovation.
“We expect the cash proceeds from this divestiture to be deployed in-line with our current balanced capital allocation program which includes strategic investments and acquisitions to further strengthen our core businesses as well as returning cash to shareholders through both our dividend and share repurchase program.”
BofA Securities is serving as Huntsman’s financial advisor and Kirkland & Ellis LLP is acting as its legal advisor.
August 2, 2022
Tenex Statement on SES Sale
Tenex Capital Management Exits SES Foam
| New York, NY – August 2, 2022 – Tenex Capital Management (“Tenex”) is pleased to announce the sale of SES Foam, a leading manufacturer of spray foam insulation, to Holcim, a global leader in sustainable building solutions. The sale marks the realization of Tenex’s SES Foam insulation portfolio, which also included an investment in US GreenFiber in 2013 and continued with its investment in SES Foam in 2016. Since Tenex’s initial investment in SES Foam, the business has expanded rapidly, with revenue increasing approximately six-fold, entirely through organic growth. SES Foam CEO Charles Valentine commented, “Tenex was an invaluable partner for SES, providing us the resources we needed to help execute on our ambitious growth plans. The Tenex team aided SES in scaling our team, supporting critical new product launches, and vertically integrating our blending operations, which enabled SES to thrive throughout the pandemic and capture market share over the years by delivering superior products and best-in-class service to the marketplace.” Tenex Managing Director Gabe Wood said, “We are thrilled for Charles, Adam Faber and the entire SES team for their remarkable achievements over the last six years, and we’re honored to have played a small part in this latest chapter of their incredible story. This is an exciting new phase for the company, and we are confident that SES will continue to ascend to new heights as part of Holcim.” The transaction closed on July 29, 2022. Houlihan Lokey served as lead financial advisor to SES Foam, and Lazard served as co-advisor. |
| About SES Foam: Founded in 2009 and based in Spring, TX, SES has a history of innovation with solutions like SucraSeal®, the first sucrose-based spray foam insulation to be certified by the US Department of Agriculture for its high bio-based content. SES offers superior products that improve buildings’ energy efficiency and thermal comfort, while lowering their carbon footprint. The company stands out for its value-added services to contractors, including onsite technical instruction, business consulting, branding and lead generation support. For additional information, please visit www.sesfoam.com. |
| About Tenex Capital Management: Tenex Capital Management is a private equity firm that invests in middle market companies. Tenex uses an in-house team of hybrid investment professionals skilled in operational leadership, investing, and capital markets structuring to maximize long-term value creation. Tenex’s deep operating experience allows the firm to collaborate with management teams to capitalize on business and market opportunities. Tenex has successfully invested in a diverse range of industries, including industrials, business and tech-enabled services, healthcare, building products, and auto aftermarket, among others. For additional information, please visit www.tenexcm.com. |
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