CPS Performance Materials, a diversified specialty chemicals manufacturer of performance polymers, fine chemicals, and chemical illumination solutions, announced today the acquisition of FAR Chemical from Edgewater Capital Partners. The terms of the acquisition were not disclosed.
In 2017, Arsenal Capital Partners created CPS as a new platform focused on specialty polymers and chemicals focusing on high-value end markets through the acquisition of Cyalume Technologies.
FAR is an industry leader in the development and production of specialty organic chemicals for customers in industries including pharmaceuticals, composites, coatings, electronics, flavors, fragrances, and personal care.
Jeremy Steinfink, President and CEO of CPS, said, “FAR’s specialized chemistry capabilities in bromination, organometallics, and cryogenic reactions combined with safe and effective management of hard to handle materials are a nice compliment to CPS. The combination of FAR with CPS’s specialty chemical and cGMP manufacturing capability will enable us to broaden our offerings to pharmaceutical, advanced composites, CASE and personal care customers.”
Sal Gagliardo, an Industry and Operations Partner of Arsenal and Chairman of CPS, commented, “The addition of FAR to CPS builds on our strategy to expand the breadth of our specialty chemicals platform with highly complementary capabilities and resources. The acquisiton strengthens our technlogy offerings to both FAR’s and CPS’ customers and positions CPS for significant growth. We are delighted to have the FAR team join CPS.”
Joe Beatty, CEO at FAR, added, “Our team at FAR Chemical is very pleased because the growth synergies are compelling. Combining our companies will result in an expanded suite of chemistries and capabilities, allowing us to provide enhanced product and service offerings to our customers and more opportunity for our suppliers. These two companies complement each other on a number of levels, from chemistries and capabilities to common customers and a focus on our key growth markets.”
“Thank you to the FAR team for driving the growth and success during our ownership. We’re excited to see the organization’s continued success and believe the CPS platform will further strengthen FAR’s ability to support its customers through its unique capabilities and chemistries,” said Bob Girton, Partner at Edgewater.
Seaport Global Securities LLC acted as financial advisor to Edgewater. Balmoral Advisors acted as financial advisor to Arsenal and CPS.
About FAR Chemical
Founded in 1982, FAR Chemical is an industry leader in the manufacturing of specialty organic chemicals for customers in industries including pharmaceuticals, structural composites, CASE and foam, electronics, flavors, fragrances and personal care, catalysts, polymers and plastics. The company has deep experience and expertise in handling challenging chemicals including bromine, chlorine, reactives, and corrosives. It is a participating partner in SOCMA and its Responsible Care® initiative. Located in Palm Bay, Florida, FAR Chemical is a trusted manufacturing partner for some of the world’s most recognized companies. For more information, visit www.far-chemical.com.
About CPS Performance Materials
CPS Performance Materials produces specialty chemicals and pharmaceutical components, designs and manufactures unique related products, and manufactures components for use in pharmaceutical, medical, commercial, and military markets. The company is headquartered in Ft. Lauderdale, FL and has manufacturing locations in West Springfield, MA, Bound Brook, NJ and Aix-en-Provence, France. For more information, visit https://www.cyalume.com.
About Edgewater Capital Partners
Edgewater Capital Partners, headquartered in Cleveland, Ohio, is a sector focused private equity firm investing in lower, middle-market performance materials businesses. Edgewater has extensive experience and expertise in niche manufacturers of specialty chemicals, pharmaceuticals, and engineered substances. Twenty years of industry specific investing has allowed the Firm to develop a deep understanding of the complexities and nuances common to these businesses. For more information, visit www.edgewatercapital.com.
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. For more information, visit www.arsenalcapital.com.
