Arsenal Capital Partners, a New York-based private equity firm that invests in middle market specialty industrial, healthcare and financial services companies, is to acquire DSM Special Pr
Arsenal Capital Partners, a New York-based private equity firm that invests in middle market specialty industrial, healthcare and financial services companies, is to acquire DSM Special Products, a unit of the Dutch-based Royal DSM chemicals and life sciences group with annual sales of USD150m.
Based in Sittard in the Netherlands with a manufacturing facility in Rotterdam, DSM Special Products manufactures specialty ingredients used in food, pharmaceuticals and animal feed, as well as in a range of industrial applications. Upon completion of the transaction, expected in the second quarter of this year, the company will be renamed Genovique Specialties.
DSM Special Products makes Purox B, a building block for plasticizers, resins and many other applications, Purox S, a preservative and key ingredient in VevoVitall, a feed additive reducing ammonia emissions in livestock, as well as benzaldehyde and benzyl alcohol, two versatile fine chemicals used in pharmacuticals, flavours and fragrances as well as construction materials.
‘The acquisition of DSM Special Products is an excellent fit with our investment strategy in the specialty chemicals sector to acquire mid-size, niche market leaders in higher growth sectors that are supported by strong management teams,’ says Arsenal Capital principal John Televantos.
‘The acquisition will provide an excellent platform for growth through future investments planned for the Rotterdam site, including a new manufacturing facility for di-benzoate esters and incremental capacity improvements to ensure our customers have a reliable supply of high quality products to meet their growing needs.’
Last September DSM announced plans to focus on its life sciences and material sciences businesses and to divest the special products business.
Arsenal Capital Partners, which makes investments in specialty industrial, healthcare and financial services companies, currently has USD800m of equity capital under management, and has offices in New York City and Shanghai.
