Arcane Capital Partners acquires two manufacturing plants for $100 million

Arcane Capital Partners, an Arkansas-based, privately-held investment firm acquired Petroflex North America and Wescon Plastics LLC. A press release from the group said the total of both acquisitions exceeded $100 million. The acquisitions bring Arcane’s portfolio to five acquired companies since December 2021.

Based in Gainesville, Texas, Petroflex manufactures superior quality, continuous length HDPE (High Density Polyethylene) conduit and accessories made from significant recycled content, primarily serving the electric utility, renewables (wind & solar), irrigation, telecommunications and data/voice industries.

Wescon Plastics, based in Wichita, Kansas, has been in operation since 1972. It specializes in engineered resins to make tight tolerance products for end-use across energy, heavy equipment, electrical, batteries, HVAC, and recreation vehicles.

“We are very pleased with this transaction and see these companies as great additions to our business. We’ve added significant manufacturing experience to our team, increased production capacity and in-house recycling capabilities, while also broadening our geographic footprint. I am proud of what our team has accomplished in moving our business forward and grateful for the partnerships we have created through this process,” said Arcane’s Managing Partner and CEO Michael Hickmon.

Senior bank financing was provided by JPMorgan Chase & Co. through syndication with PNC Financial Services and Regions Financial Corporation. Additional transaction financing was provided by Aventurine Partners in the form of preferred equity.

Markus Specks, partner and CEO at Aventurine, will join Arcane’s board of directors.

“We’re excited to partner with Arcane in a shared vision to decarbonize established industrial sectors. The Arcane family of companies manufactures key products that contribute to renewable power proliferation and utility grid upgrades. Additionally, in-house recycling operations deliver measurable decarbonization today, pairing several of our core investment theses,” said Specks.

Arcane was advised by Stout Investment Bank and Mount Vernon Capital, LLC on financial matters related to the transaction. Kutak Rock LLP served as legal representation for Arcane. Vinson & Elkins LLP advised Aventurine.