The Fine Chemicals business has a uniqueportfolio of strong regarded products

Tag : Agrochemicals

 Arsenal Capital Partners, a leading New York -based private equity firm that invests in middle-market specialtyindustrial, healthcare, and financial services companies, todayannounced that it has signed a definitive agreement to acquireFerro Corporation's (NYSE: FOE) Fine Chemicals business, a leadingmanufacturer of electrolytes used in the manufacture of lithium ionbatteries, as well as high performance intermediates for other keyend products, for $66 million .
The new stand-alone company will be named Novolyte Technologies andhas manufacturing facilities in both the U.S. and China . The company's products include electrolytes and materials usedfor lithium batteries, ultracapacitors and other energy storagedevices, solvents used in a variety of industrial processes andproducts, electronic materials, polymer ingredients, pharmaceuticaland agricultural chemicals. The company's products and technologysolutions are an integral part in the emerging growth of lithiumbatteries for hybrid electric (HEV) and electric vehicles.
"This is a signature Arsenal transaction that plays to thecore strengths of our firm's operating expertise," said John Televantos , a Principal of Arsenal Capital who leads the firm's specialtychemicals practice. "The Fine Chemicals business has a uniqueportfolio of strong and highly regarded products and technologythat will be better positioned as a stand-alone company to takeadvantage of global opportunities. With the strength of thecompany's senior management team, future strategic investments andthe skills of our operating executives who have enhanced theperformance of similar businesses, we aim to add value to Novolyteby capturing new global growth initiatives and building aworld-class company."
Arsenal has previously led a number of complex corporate carve-outsand successfully executed several such transactions in concert withleading corporations, including Cambrex Corporation, Wyeth, andMail-Well, Inc. Earlier this year, Arsenal announced plans toacquire DSM Special Products, a business unit of Royal DSM N.V.that manufactures specialty ingredients used in food, pharma, andanimal feed, as well as in a range of industrial applications.
Edward Frindt , who is now General Manager of the business will become CEO ofNovolyte upon completion of the transaction. He has been with theFine Chemicals business for eight years and has helped to grow thebusiness internationally. Mr. Frindt recently completed anassignment in China as the Asia Business Director where he was responsible for newbusiness development in the region, including the successfulstartup of the new Battery Materials Plant.
Timothy Zappala , an Arsenal Operating Partner, said, "The Fine Chemicalsbusiness is developing novel materials for use in future powertechnologies and, with key manufacturing operations and marketingcapabilities in China , Arsenal will leverage our presence in China to further develop markets in this region as well as globally. Asan independent company, Novolyte wicll have the support of skilledand dedicated investors who provide the flexibility to leverage thecompany's technology and build Novolyte into a stronger globalenterprise. We look forward to partnering with Ed and his seniormanagement team who have a strong competency in specialty chemicalsand materials."
The transaction is expected to be completed in the fourth quarter.
Arsenal's current investments in the specialty chemicals sectorinclude Velsicol Chemical, a leading global manufacturer of high performance specialtychemicals including benzoic acid and its derivatives which are usedin applications such as agrochemicals, food and beveragepreservatives and non-phthalate plasticizers. In 2007, Arsenal soldVertellus Specialties, a leading provider of specialty chemicalsfor the agriculture, nutrition, pharmaceutical, personal care, andperformance materials markets, after successfully building thebusiness and increasing annual sales to more than $450 million .
About Arsenal Capital Partners
Arsenal Capital Partners is a New York -based private equity firm that makes investments in specialtyindustrial, healthcare and financial services companies. Arsenalmakes investments in sectors where the firm has prior knowledge andexperience, and targets businesses that have the potential forfurther value creation by working closely with management toaccelerate growth and leverage the firm's operational improvementcapabilities. Arsenal currently has $800 million of committed equity capital. For additional information on ArsenalCapital Partners please visit www.arsenalcapital.com .
SOURCE Arsenal Capital Partners
For further information: Chris Tofalli of Chris Tofalli PublicRelations, LLC, +1-914-834-4334, for Arsenal Capital Partners
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