Genesis Capital is pleased to announce that SASCO Chemical Group, Inc. (“SASCO Chemical” or “the Company”), a third generation family-owned business, has been acquired by Arsenal Capital Partners (“Arsenal”) joining Arsenal’s specialty polymers and additives platform, Polymer Solutions Group (“PSG”).
Founded in 1948 and headquartered in Albany, Georgia, SASCO Chemical is a leading manufacturer of rubber anti-tack agents in North America with its PolyCoat, TechKote and SASCO Cote product lines. SASCO Chemical has a research and development center in Macon, Georgia, produces more than 1,200 products and distributes them globally.
PSG was formed by Arsenal in June 2015 with the acquisition of Peach State Labs, Inc., a leading provider of specialty polymers and performance chemicals. In February 2016, PSG acquired Flow Polymers LLC 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.
“Genesis Capital guided our family through a very complex process and delivered a fabulous result which exceeded our expectations” said Marc Skalla, President of SASCO Chemical. “They provided invaluable advice in helping us achieve our financial, strategic and operational goals, including securing the optimal partner for our family business.” Rusty Skalla, COO said “The Genesis Capital team was actively involved in every stage of the process. The guidance we received from Genesis Capital, along with their knowledge of the industry and transaction expertise, allowed us to move with speed and certainty to achieve the best possible outcome for our family, company and employees.”
Marc and Rusty Skalla also issued a joint statement as follows. “The combination of SASCO Chemical, Flow Polymers, and Peach State Labs will continue to build upon the commitment to delivering the best release agents in the industry to our client base worldwide. We are excited to leverage the new platform to continue our global expansion in the anti-tack business. Each individual company brings unique strengths to the group that will allow expanded product offerings to our customers while continuing and strengthening the research and customer service levels that our customers have known.” Both Marc and Rusty Skalla will remain actively involved in continued growth of PSG.
Mike Ivany, President and Chief Executive Officer of PSG, said, “We are excited to add SASCO Chemical to the PSG group of companies. SASCO’s strong reputation for supplying high value products and unmatched customer service fits well with PSG’s goal of providing value through superior product performance and ongoing customer support. The addition of SASCO further strengthens our position in the rubber additives market and allows us to better serve our existing customers with new products and innovative performance solutions. We are delighted to have Marc and his team join our platform.”
Sal Gagliardo, an Operating Partner in Arsenal’s Specialty Industrials Group, said, “The acquisition of SASCO Chemical builds on PSG’s model of addressing unmet market needs through the development of differentiated technologies and services to solve customer needs. We will continue to pursue acquisition opportunities to expand the PSG platform in existing and new markets and broadening our capabilities to service our customers.”
Genesis Capital, LLC acted as financial advisor to SASCO Chemical and Smith Gambrell & Russell LLP provided legal counsel. PSG was advised by Kirkland & Ellis, and Twinbrook Capital and Kayne Anderson, PSG’s existing lenders, provided debt financing in support of the acquisition.
About SASCO Chemical Group, Inc.
SASCO Chemical, a third generation family business, is a leading manufacturer and developer of proprietary specialty chemicals, release agents and colorants, for use in the rubber, wood, consumer and medical industries. The Company produces more than 1,200 products at its facilities in Albany, Georgia and distributes them globally. SASCO also operates a state-of-the-art research and development center in Macon, Georgia. SASCO’s primary products are industry-leading rubber anti-tack agents that are sold throughout North and South America, Europe and Asia.
About Arsenal Capital Partners
Arsenal Capital Partners is a New York-based private equity firm that invests in middle market specialty industrial and healthcare 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 manages $2.6 billion of committed equity capital.