Carlisle Companies to acquire Accella

NEW YORK—Carlisle Companies Inc. has agreed to buy Accella Performance Materials, a developer of polyurethane elastomer and foam systems—including the TyrFil flatproofing tire-fill business—from Arsenal Capital Partners for $670 million.

Maryland Heights-based Accella has annualized revenue of approximately $430 million and estimated EBITDA margins approaching 15 percent. It operates 10 plants and seven research and development laboratories in the U.S., Germany and China.

"The acquisition of Accella Performance Materials is part of our well-established strategy of providing customers with high quality, innovative solutions for building envelope applications," said D. Christian Koch, Carlisle president and CEO.

Accella provides an "excellent adjacent opportunity" into the polyurethane market, which includes spray polyurethane foam and liquid applied roofing, markets that are expected to grow 10 to 15 percent annually through 2020.

In addition to accessing new products, new technologies and new markets, Accella delivers profitable market diversity to our CCM business, Koch said.

Andy Harris, Accella president and CEO, noted that the the two firms have similar business approaches.

"Carlisle's focus on culture, technology, markets and value creation are highly complementary with Accella and provide significant opportunities for our customers."

The parties did not say how the TyFil tire-fill business will fit into Carlisle's business platform. Carlisle scheduled a conference call for 1 p.m. Oct. 3 to discuss the deal in more detail.

New York-based Arsenal Capital formed Accella in 2014, combining a number of related acquisitions—including Arnco Inc. and Pathway Polymers—under one name.

Arsenal bought Arnco and Pathway in separate deals in May 2013 and put them together with the Dash Multi-Corp. polymers processor that Arsenal had acquired in 2012. Arsenal purchased Pathway from Vita Group, an English polymers processing company, and Arnco from its owners.

Accella Tire Fill Systems, formerly ArncoPathway, has been transitioning its various tire-fill products to a more unified naming system under the TyrFil brand.

Arsenal describes itself as private equity firm that invests in middle-market specialty industrials and health care companies.

Roy Seroussi, a principal at Arsenal, said Accella's revenue and EBITDA have increased by seven and eight times, respectively, under Arsenal "through focused organic growth strategy and nine strategic acquisitions."

Carlisle noted that the acquisition of Accella will allow it to offer a portfolio of products that meet an increasing array of their building needs and can be delivered as a seamless solution or standalone offering.

Among Accella's businesses are: Dash Multi-Corp.; MarChem; Arnco; Pathway Polymers; Ultimate Systems; RB Rubber; IPS Polymer Systems; Zeus; Premium Spray Products; Coating & Foam Solutions; Burtin Polymer Labs; Quadrant Spray Foam; and Covestro's Spray Foam business.

The transaction is subject to customary closing conditions and regulatory approvals, and is expected to be completed in the fourth quarter.