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Arsenal Capital sells Genovique Specialties to Eastman Chemical

Arsenal Capital Partners, a New York-based private equity firm, has completed the sale of portfolio company Genovique Specialties, a provider of benzoate plasticizers, to Eastman Chemical.

To build Genovique, Arsenal acquired Velsicol Chemical in 2005 and since that time separated portions of its product lines into niche businesses.

The business unit which manufactures benzoic acid, sodium benzoate and specialty plasticizers that are performance based solutions for the adhesives and sealants, coatings, and PVC markets was re-branded in 2007 as Genovique Specialties.

Tim Zappala, chairman of Genovique and a partner of Arsenal Capital who co-heads the firm’s specialty chemicals and materials practice, says: "We were very pleased to have worked with chief executive Ross McMillan and his management team to grow the business over the past several years. During our partnership we successfully established Genovique as an independent company focused on high growth product lines with a particular emphasis on the non-phthalate plasticizers that are more environmentally sound products and are increasingly more desirable by its global customers."

Arsenal continues its ownership of Velsicol, a manufacturer of chemical intermediates used in applications such as agrochemicals, as a portfolio company of Arsenal Capital Partners Fund I.

Arsenal has been active in the first several months of 2010, making a significant equity investment in March in FrontStream Payments, a provider of payment processing solutions.

Arsenal strengthened its investment team with the promotions of Eugene Gorbach to vice president and Roy Seroussi to senior associate.

Arsenal’s current investments in the specialty chemicals sector include Velsicol Chemical, a manufacturer of high performance chemicals used in agriculture and industrial applications, and Novolyte Technologies, a manufacturer of specialty electrolyte materials for lithium ion battery and energy storage applications and a variety of other technically demanding custom manufactured products for the electronics, pharmaceutical and industrial markets.

"The specialty chemicals sector is one of our key focus areas and we will continue to pursue opportunities with niche capabilities and positive end market trends," says Jeff Kovach (pictured), managing director of Arsenal Capital.

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