NEW YORK—Arsenal Capital Partners' recently formed Elite Comfort Solutions business is expanding rapidly.
A large New York-based private equity firm, Arsenal has purchased a majority interest in Peterson Chemical Technology to further bolster the Elite Comfort specialty polyurethane foam operation, which serves both the bedding and home furnishings markets.
It also completed the acquisition of HSM Foam, a large producer of flexible polyurethane foam products, from Hickory Springs Manufacturing Co.
HSM will become a subsidiary of Elite Comfort, a spokesman said.
Financial details of the transactions were not disclosed.
Arsenal's investments are the third and fourth transactions the business has completed in the last month.
All four are part of the Elite Comfort operation, which was formed in March.
Other companies that currently make up the business are Pacific Urethanes L.L.C. and Elite Foam Inc. The private equity firm acquired a majority interest in both firms in March.
Based in Fort Smith, Ark., Peterson Chemical is a global company specializing in polyurethane foam products through additives, specialty polyols, systems and applications development, Arsenal said.
The company will operate out of its plant in Fort Smith as an independent buaineaa within the Elite Comfort platform and focus on specialty additives and chemicals, while continuing to provide products and services for its global customer base.
Its management team and work force will remain with the business, the spokesman said.
Bruce Peterson, president of the company, will continue to oversee the business and drive its product development efforts.
He noted that the transaction will enable Peterson Chemical to grow and expand its portfolio of technologies “by accelerating investment in capacity, R&D capabilities and talent.”
Peterson Chemical is a producer of open cello viscoelastic foam and gel-infused foam technologies, Arsenal said, along with a wide range of specialty polyols and additives that have changed the look and performance of specialty bedding products globally.
It was interested in acquiring a majority stake in the company because of its unique portfolio of technology, and its foam technologies make it a good fit for Elite Comfort, the spokesman said.
“Peterson Chemical has been a leading innovator in the polyurethane foam sector,” said John Televantos, a partner at Arsenal and co-head of its Specialty Industrials Group. “We are delighted to support Bruce and his team with greater focus on future innovations.”
He said Arsenal's intent “is to commercialize new products more effectively around the world for the benefit of the bedding industry and the broader polyurethane market.”
Arsenal, which manages $2.6 billion in committed equity capital, has an extensive background in the polyurethanes industry.
In addition to its new Elite Comfort platform, the firm's portfolio of companies includes a large custom formulated polyurethane products and systems business, Accella Performance Materials.
It formed the unit in 2012 and has since then made eight acquisitions to expand the business significantly.
Accella has grown to become one of the leading players in the elastomers, tire fill, spray foam insulation, casting resins, surface and specialty coatings, and adhesives markets. It operates 11 production plants spread across the U.S., Europe and China.