Arsenal Capital Partners, a New York-based private equity firm that invests in middle-market specialty industrial and healthcare companies, has acquired Flowchem, a specialty chemical provider to the pipeline industry.
Founded in 2001, and headquartered in Waller, Texas, Flowchem is a provider of Drag Reducing Additives (DRAs) to improve pipeline flow in onshore and offshore pipeline applications.
The company's DRAs reduce drag and turbulence in petroleum pipelines in order to increase throughput capacity and energy efficiency, providing significant cost savings to pipeline operators.
The company has two operating facilities in Texas.
"We are delighted to have the opportunity to invest in an innovative company with a track record of providing unique solutions and services to the global oil pipeline industry. Flowchem's high value products are solving problems for the pipeline industry in a time of increasing supply of oil and constrained infrastructure. The acquisition of Flowchem builds on Arsenal's portfolio and established expertise in the Specialty Industrial sector," says John Televantos, a partner who co-heads Arsenal's specialty industrials practice.
"Arsenal is the right partner given their expertise in the chemicals sector. We believe that Arsenal is uniquely capable of supporting the company's growth in the US and globally. This is a positive development for our customers, employees, suppliers and other partners," says Steve Erikson, co-founder and chief executive of Flowchem.
The acquisition of Flowchem is the 11th acquisition by Arsenal and its portfolio companies in 2013, and the ninth by its specialty industrials team, and follows the acquisitions of TP Electrical, Fournier Air Conditioning and Refrigeration, Arnco, Pathway Polymers, ADCO Global, International Fiber Corporation, Fibred Corporation and CPS Color's Colorants Business.
