Mergers & Acquisitions

CPS Performance Materials Group acquires Geo Specialty Chemicals

CPS Performance Materials Group acquires Geo Specialty Chemicals
Photo courtesy of GEO Specialty Chemicals

CPS Performance Materials, a diversified specialty chemicals manufacturer of performance polymers, fine chemical, and chemical illumination solutions, has acquired GEO Specialty Chemicals, a diverse supplier of specialty chemicals and materials to the coatings, adhesives, medical, water treatment and construction markets. GEO Specialty Chemicals operates in three divisions – Paints & Coatings, Water Treatment, and Specialty & Construction – with leading positions in its primary chemistries from 19 production sites in the U.S. and Europe.

CPS is a portfolio company of Arsenal Capital Partners, a leading private equity firm that specializes in investments in middle-market specialty industrials and healthcare companies. The terms of the acquisition were not disclosed.

In the recent past, GEO Specialty Chemicals has undertaken a number of expansions to increase its presence in the attractive markets of materials for contact lenses, additives for oil and gas drilling, and municipal and industrial water treatment. This builds upon GEO’s already strong position in methacrylate chemistry where it is a leading supplier to the global coatings and adhesives markets. GEO is also the largest U.S. producer of glycine, a key amino acid used in a variety of nutrition and personal care products.

“GEO significantly adds to the scale of CPS and positions us well in a number of growing end markets. Our strategy will focus on investing in GEO’s businesses which complement many of CPS’s existing positions in attractive end-markets such as CASE additives, specialty chemicals for pharma and medical uses, nutrition, personal care and a wide range of industrial applications. We see opportunities to expand across the portfolio where we can leverage our chemical expertise and continue to be a reliable commercial partner,” said Jeremy Steinfink, president and CEO of CPS.

“CPS is a great fit for our employees and business partners. I look forward to working with Arsenal and the CPS team to continue to build the platform,” said Ken Ghazey, CEO of GEO who will join the Board of Directors of CPS.

“The addition of GEO to CPS builds on our strategy to expand the breadth of our specialty chemicals platform with highly complementary capabilities and resources. The acquisition strengthens CPS’s technology offerings to both GEO’s and CPS’s customers and positions CPS for significant growth,” said Sal Gagliardo, an operating partner of Arsenal and the chairman of CPS.

The Valence Group acted as financial advisor to Arsenal and CPS.

Founded in 1993, GEO has grown through strategic acquisition and commitment to niche markets to become a leading supplier of specialty chemicals. GEO currently manufactures more than 300 products for a broad customer base of more than 1,000. GEO markets include water treatment; coating and resin additives; specialty acrylic monomers; consumer additives; plus a broad range of dispersants, surfactants, and other additives for the concrete admixtures, synthetic rubber polymerization, gypsum processing, and oil well drilling markets.

CPS Performance Materials is a diversified specialty chemicals manufacturer of coatings additives, pharmaceutical intermediates and API’s, chemical illumination solutions, performance polymers, and fine chemicals and intermediates.

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