Polymer Solutions Group Acquires Flow Polymers

Technology Leaders Combined To Serve Automotive, Industrial, And Construction Markets

NEW YORK - Arsenal Capital Partners (Arsenal) today announced that its specialty polymers and additives platform, Polymer Solutions Group (PSG), acquired Flow Polymers LLC (Flow Polymers), a leading global provider of specialty additives and dispersions to a number of polymer and plastics end markets, from Geneva Glen Capital. PSG was formed by Arsenal in June 2015 with the acquisition of Peach State Labs, Inc. (Peach State Labs), a leading provider of specialty polymers and performance chemicals.

Headquartered in Cleveland, Ohio, Flow Polymers is a leading manufacturer of proprietary and custom chemical dispersions, process aids and homogenizing agents for tire, automotive, industrial products, wire and cable and plastics markets. Flow Polymers’ focus is the development and manufacture of unique products that meet customers’ current and future needs.

Sal Gagliardo, an Operating Partner in Arsenal’s Specialty Industrials Group, said, “Flow Polymers builds on our strategy to create a diversified leader of high-value niche solutions serving customers in the polymers and plastics end markets. Flow Polymers has a strong presence in automotive and industrial applications while Peach State Labs provides a number of unique technologies to the construction and lubricants market. We are excited to partner with Mike Ivany and his team to continue to grow the PSG platform.”

Mike Ivany, President and Chief Executive Officer of Flow Polymers, a veteran with over 30 years of experience in the chemical industry, will serve as President and Chief Executive Officer of PSG. Mike Ivany, said, “The management team at Flow Polymers is excited to be working with Arsenal on the PSG platform. Building on successful, long term growth and leveraging the technical expertise and market leadership of both Flow Polymers and Peach State Labs gives PSG a great foundation from which we will continue to grow.”

John Televantos, a Partner who co-heads Arsenal’s Specialty Industrials group, said, “We will continue to build on the Flow Polymers acquisitions by harvesting on new product launches and additional acquisitions that will enable PSG to better serve its existing customers and enter new markets.”

PSG was advised by Kirkland & Ellis. Twinbrook Capital and Kayne Anderson, the company’s existing lenders, provided debt financing in support of the acquisition.

KeyBanc Capital Markets acted as financial advisor to Flow Polymers.

About Arsenal Capital Partners

Arsenal Capital Partners is a leading New York-based private equity firm that invests in middle market healthcare and specialty industrial companies. Arsenal makes investments in sectors where the firm has significant prior knowledge and experience. Arsenal targets businesses that have the potential for further value creation, and works closely with management to accelerate growth by leveraging the firm’s industry focus and operational improvement capabilities. Arsenal currently has $2.3 billion of committed equity capital. For additional information on Arsenal Capital Partners, please visit www.arsenalcapital.com.

Arsenal’s Specialty Industrials investments includes several market leaders including Kel-Tech, a leading provider of specialty chemicals and related services to oil & gas exploration and production companies; Flowchem, a leading provider of patented and environmentally friendly drag reducing additive solutions and support services to crude oil and refined products pipeline operators; Accella Performance Materials, a leading manufacturer of formulated polyurethane, specialty coatings as well as recycled rubber products; Chromaflo Technologies, the largest independent global pigment dispersion provider to the architectural and industrial coatings and thermoset composites industries; Inhance Technologies, a leading provider of unique plastic barrier, adhesion and surface enhancement products and services as well as manufacturer of value-added materials; International Fiber Corporation, a leading provider of dietary insoluble fiber for food and pharmaceutical markets; and IGM Resins, a leading provider of intermediates to the global ultraviolet radiation cure coatings, inks and adhesives industry.