CPS Performance Materials (CPS) – a specialty chemicals manufacturer has reportedly announced that it has acquired FAR Chemical (FAR) from Edgewater Capital Partners – a private equity firm.
Seaport Global Securities LLC reportedly played the role of Edgewater’s financial advisor for the deal, while Balmoral Advisors was the financial advisor for CPS and Arsenal. Arsenal Capital Partners formed CPS – a platform that focuses on specialty chemicals and polymers aimed at high-value end markets – after it reportedly acquired Cyalume Technologies in 2017.
According to a press release by FAR Chemical, the company, an industry leader in the production and development of specialty organic chemicals for consumers in industries ranging from coatings, composites, pharmaceuticals, fragrances, personal care, electronics, and flavors – compliments CPS on several levels as they both focus on chemistries as well as capabilities to common consumers with a focus on crucial growth markets.
The Industry & Operations Partner of Arsenal, Chairman of CPS, Sal Gagliardo stated that the acquisition of FAR builds upon CPS’s existing strategy to grow the company’s specialty chemicals platform with resources and capabilities that are highly complementary. Gagliardo further added that the acquisition reinforces the technology offerings to both – the firm’s customers and also positions the company for significant growth in the future.
The CEO of FAR, Joe Beatty stated that the company is extremely thrilled due to the fact that growth synergies are rather compelling. Beatty further added that the amalgamation of the two companies would result in a broad suite of capabilities and chemistries while allowing the company to facilitate an enhanced service and product offering to its customers and also create more opportunity for the suppliers.
The President & CEO of CPS, Jeremy Steinfink stated that FAR’s capabilities in organometallics, cryogenic reactions and bromination combined with its effective and safe management of difficult to handle materials would prove to be extremely beneficial to CPS.
According to reports, the financial information related to the acquisition deal has not been released to the public yet.