Genesis Capital Advises Arsenal Capital Partners On Its Acquisition of Polytek Development Corp.

Genesis Capital Advises Arsenal Capital Partners On Its Acquisition of Polytek Development Corp.

Genesis Capital is pleased to announce that Arsenal Capital Partners (“Arsenal”), a leading private equity firm that invests in middle-market specialty industrial and healthcare services companies, has acquired Polytek Development Corp. (“Polytek”), a leading manufacturer of liquid mold rubbers and casting plastics, from Morgenthaler Private Equity.

Graham Schena, Partner at MPE, said, “Genesis Capital was integral to the execution of Polytek’s acquisition growth strategy. Their expertise was paramount to our successful closing of three acquisitions, helping Polytek unlock substantial growth both within its product lines as well as geographically. Further, Genesis Capital’s knowledge of the acquirer landscape for Polytek allowed us to build the business with an eye towards this successful sale to Arsenal Capital.”

Polytek’s proprietary specialty polymers are used by customers to create flexible molds to reproduce highly-detailed, complex objects for a variety of industrial and consumer applications, including concrete casting, special effects, tooling, sculpture, and prototyping.

Arsenal brings significant experience investing in the global polymers market, having previously built Accella Performance Materials, a polyurethanes systems company, through nine strategic acquisitions, and Elite Comfort Solutions, a leading manufacturer of specialty polyurethane foam technologies serving the bedding market.

Roy Seroussi, an Investment Partner at Arsenal said, “Polytek has developed niche technologies in a number of applications, with a strong reputation of innovation and technical support. The company’s portfolio fits well with Arsenal’s previous expertise in polymer technologies, such as in polyurethanes, silicones, and epoxies, where we have successfully invested in the past. We look forward to partnering with Polytek and its employees and to accelerating Polytek’s growth plans by delivering more solutions and capabilities to its customers.”

Don Nolan, Chair of Polytek’s board, added, “We are delighted to partner with Jonathan Kane and his team. Polytek has a track record of successfully acquiring and integrating complementary technologies and product lines focused on its key markets. We will continue the trajectory of acquiring high-value polymer solutions and expect robust acquisition activity over the next few years.”

Jonathan Kane, CEO of Polytek, said, “The team at Polytek and I are excited to partner with Arsenal. Their deep experience in specialty chemicals and their operating model will bring tremendous value to Polytek, its customers, and its employees, and accelerate our plans for growth.”

Genesis Capital, LLC acted as financial advisor to Arsenal Capital Partners and Kirkland & Ellis provided legal counsel. MPE received legal counsel from Baker & Hostetler LLP. Madison Capital Funding LLC, Polytek’s existing lender, provided debt financing in support of the acquisition.

About Polytek Development Corp.

Founded in 1984 and headquartered in Easton, PA, Polytek® Development Corp. is a leading manufacturer of specialty polymers including: polyurethane elastomers and casting resins, silicones, epoxies, and latex. These systems are used primarily in mold making and casting applications in industrial, construction, entertainment, fine arts, and technology sectors.

About Arsenal Capital Partners

Established in 2000, Arsenal is a leading private equity firm that specializes in investments in middle-market specialty industrials and healthcare business services companies. Since inception, Arsenal has raised institutional equity investment funds of approximately $3 billion. Arsenal invests in industry sectors in which the firm has significant prior knowledge and experience and seeks companies typically in the range of $100 – $500 million of initial enterprise value. The firm works with management teams to build strategically important companies with leading market positions, high growth, and high value-add.

About Morgenthaler Private Equity

MPE Partners (“MPE” or “Morgenthaler Private Equity”) seeks to be the preferred partner for entrepreneur- and family-owned companies. Based in Cleveland, OH, and Boston, MA, MPE invests in profitable, lower middle market companies with EBITDA between $5 – $20 million. MPE has two primary target investment areas: high-value manufacturing and industrial services.

Company Type: Private Companies

Transasction Type: Buyside M&A

Industry: Industrial Manufacturing