New York-based private equity firm Arsenal Capital Partners has bought Kel-Tech Inc, a statement about the acquisition said. Financial terms of the deal were not disclosed.
The deal was carried out with Kel-Tech being advised financially by PPHB and legally by Todd, Barron, Thomason, Hudman & Baxter, P.C. Arsenal's legal advisor for the transaction was Kirkland & Ellis with the Keller family being financially advised by Syntal Capital. To facilitate the purchase of the Midland, Texas-based oilfield chemicals provider, senior debt funding was given by KeyBank Capital Markets and Madison Capital Funding. Subordinated debt financing were also given by funds managed by Sankaty Advisors and Metropolitan Life Insurance Company, the statement said.
Arsenal Capital Partners Specialty Industrials Co-Head Tim Zappala said in the statement, "Kel-Tech is a leading supplier of solutions to the oil and gas sector, specifically in the growing Permian basin. We look forward to working with Frankie Keller and his team to support Kel-Tech's existing customer base and growing the business geographically, through strategic add-on acquisitions."
The acquisition comes after the private equity firm's recent purchase of specialty chemical provider Flowchem Ltd. Arsenal Capital Partners has also invested in other companies that operate in specialty industrial and energy sectors. It has backed Dash Multi-Corp, IGM Resins, Chromaflo Technologies, Inhance Technologies and Royal Adhesives & Sealants, the statement said.
Kel-Tech Founder and Chief Executive Officer Frankie Keller said in the statement, "We are excited to partner with Arsenal as we enter this new stage for our business. It was important for us to team up with a strong partner as the company continues to support the growing needs of our long-standing customer base in the Permian Basin. Their operational expertise and successful track record in the chemicals and materials sector will be a valuable asset as we continue to strengthen Kel-Tech."
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