Polymer Solutions acquires Phoenix Chemical

CALHOUN, Ga.—Polymer Solutions Group acquired Phoenix Chemical Co. Inc. in February as part of an effort to strengthen its position in the soft floor market and to broaden the reach of its product line, according to its president and CEO.

Based in Calhoun, PSG is a leading manufacturer of specialty polymers and additives and a portfolio company of venture capital firm Arsenal Capital Partners. It offers niche solutions serving customers in the rubber, wood, consumer, construction and medical industries. The acquisition of Phoenix Chemical was the latest in a string of purchases for PSG, which has eight manufacturing facilities and now employs more than 500 people in Georgia, Ohio and England.

Phoenix Chemical is a specialty chemical manufacturer and distributor focused on the carpet, textile, water treatment, and household, industrial and institutional chemicals markets. The acquisition allows PSG to gain further in-house knowledge in the formulated chemical systems area that allows for enhanced processes, performance and protection for its products, President and CEO Mike Ivany said.

"PSG and Phoenix were strong players in the carpet protection market and in soft floor covering and hard surfaces, and this acquisition gives us really strong technologies in this space and an incredible group of knowledgeable professionals," said Ivany, adding that about 100 new employees came to PSG as part of the acquisition with no layoffs. Phoenix Chemical President John Bryant also remained in a leadership role.

"Our goal is to build a platform that provides compound solutions and enhanced benefits across such market verticals as construction and the rubber manufacturing (mostly tire) industries," Ivany said.

PSG is a manufacturer of specialty polymers and additives for the rubber, wood, consumer, construction and medical industries. PSG was formed by Arsenal Capital Partners in 2015 with the acquisition of Peach State Labs in Rome, Ga.

Flow Polymers in Cleveland; Sasco Chemical in Albany, Ga.; and Alkon Solutions in Leeds, England, were added in 2016 as part of an acquisition push. And in July 2017, the firm acquired Michelman Inc., a major supplier of release agents to the engineered wood market.

These acquisitions also have led PSG to build on its internal chemistry expertise, Ivany said, which has led to further expansion in the rubber market. The combined knowledge has given the company the ability to develop unique chemistry combinations for construction and other industries that have applications in the rubber market and allow PSG to offer more products.

One example is the manufacturing of silica as opposed to the use of carbon black filler. This trend is occurring because of the need to reduce rolling resistance and improve wet traction within the industry, Ivany said. Branded as SureMix by PSG, the company is building a new plant in Albany that will manufacture the filler. It is expected to be finished by the fourth quarter of 2018 and will include nearly 20,000 tons of capacity at the site of the former headquarters of Sasco.

That investment in silica filler represents a significant growth opportunity for the company, Ivany said.

"We feel like we have put together some really high-performing companies and continue to grow each of the core businesses," the executive said.

SureMix was developed for tire and rubber component manufacturers to reduce mixing time and processing costs; increase green compound shelf life; reduce energy consumption; increase silica loading or surface area; lower rolling resistance; and enhance tire handling and wet grip.

Details of the Phoenix acquisition were not released, and while Ivany declined to share specific revenue figures, he did say PSG has experienced double-digit revenue growth over the past few years that have been further enhanced with the aforementioned acquisitions. "But organically we have (seen) double-digit growth as well," Ivany said.