New York equity firm acquires Fort Smith-based Peterson Chemical

New York-based Arsenal Capital Partners became majority investor in Fort Smith-based Peterson Chemical Technology, the private equity firm announced late last week in a press release.

Peterson Chemical is a global technology company specializing in polyurethane foam products through additives, specialty polyols, systems, and applications development. The company has been providing new technologies to multiple entities in various foam industries for more than a decade. It is also the lead inventor of open-cell viscoelastic foam and gel-infused foam technologies, along with a range of specialty polyols and additives targeted to the bedding industry.

In March 2016, Arsenal announced the formation of Elite Comfort Solutions which includes investments in Pacific Urethanes LLC, and Elite Foam, Inc.  Elite Comfort Solutions also announced the signing of a definitive agreement with Hickory Springs Manufacturing Company (HSM) to acquire certain of its foam production assets (HSM Foam). The HSM Foam asset purchase is subject to customary closing conditions, and is expected to close early in the second quarter of 2016. Through the combination of Pacific Urethanes, Elite Foam, and HSM Foam, Arsenal will have created a specialty foam manufacturing business serving both the bedding and home furnishings markets.

Peterson Chemical will remain as an independent company within the Elite Comfort Solutions platform and operate as a separate business focused on specialty additives and chemicals, while continuing its production and customer service operations. Bruce Peterson, President of Peterson Chemical will continue to oversee the company and drive its product development efforts.

In addition to the Elite Comfort Solutions platform, Arsenal also has other active investments in the polyurethanes industry. In 2012 Arsenal formed Accella Performance Materials, a manufacturer of custom-formulated polyurethane systems. Since its initial investment, Arsenal has supported Accella’s growth through eight additional acquisitions. Accella is now a market leader in elastomers, tire fill, spray foam insulation, casting resins, surface and specialty coatings, and adhesives. Globally, Accella manufactures in 11 production facilities across the United States, Europe and China.

Arsenal is a private equity firm investing in middle market healthcare and specialty industrial companies. It currently manages $2.6 billion of committed equity capital.