New York-based private equity group Arsenal Capital Partners has launched the flexible polyurethane foam supplier Elite Comfort Solutions. The new polyurethane foam supplier is an umbrella company founded on recent Arsenal investments and acquisitions in Newnan, Georgia-based Elite Foam; the Foam Solutions division of HSM; and Pacific Urethanes LLC, headquartered in Ontario, California.
Pete Wallace, Elite president, said: “I am excited about the merger of Pacific Urethanes and Elite Foam. This merger, along with the acquisition of HSM Foam, will ensure the essential manufacturing capabilities required to meet our customers’ continuously growing and expanding business.”
HSM, with headquarters in Hickory, North Carolina, one of the largest producers of flexible polyurethane foam in North America, is selling five foam-pouring facilities in Arkansas, California, Georgia, Mississippi and North Carolina to the new entity.
“This transaction will enable HSM to strengthen its leading market positions in its transportation seating, foam fabrication, specialty spring, wire and metal products businesses,” said David Underdown, HSM chair.
Elite Comfort Solutions controls 10 production facilities and is leveraging the diverse product lines and technologies of the three foamers to distribute a range of specialty comfort foams nationwide. The management teams at each of the three businesses will continue to operate under Elite Comfort Solutions, according to a news release.
“We partnered with the management teams of Elite Foam, Pacific Urethanes and HSM Foam to bring together these three complementary players in the specialty foam industry,” said John Televantos, partner with Arsenal and co-head of the firm’s Specialty Industrials Group.
Arsenal invests in middle-market specialty industrial and health care companies.