In April, New York-based private equity group Arsenal Capital Partners completed the acquisition of certain HSM Solutions foam production assets, as well as acquired a majority stake in Peterson Chemical Technology.
The foam purchase from Hickory Springs, North Carolina-based HSM is part of Arsenal’s launch of new flexible polyurethane foam supplier Elite Comfort Solutions. The new entity combines the HSM assets with Arsenal’s purchase of Elite Foam and Pacific Urethanes.
Elite Comfort Solutions’ product portfolio is to include a complete range of branded foams developed by HSM. It will operate the existing HSM foam-pouring facilities in Arkansas, California, Georgia, Mississippi and North Carolina.
“We look forward to the partnership with HSM foam’s management and employees,” said Dino Rossi, interim chief executive officer of Elite Comfort Solutions and an advisor to its board. “The acquisition of HSM foam strengthens Elite Comfort Solutions’ national reach and adds complementary products and technologies that broaden our ability to serve customers and markets globally.”
Arsenal’s investment in feedstock supplier Peterson Chemical, which has headquarters in Fort Smith, Arkansas, adds verticality to Arsenal’s holdings in the polyurethane foam industry. According to an Arsenal news release, Peterson is to remain an independently operated company within the Elite Comfort Solutions platform focused on specialty additives and chemicals.
According to President Bruce Peterson of Peterson Chemical, “This transaction with Elite Comfort Solutions will enable us to grow and expand our portfolio of technologies by accelerating investment in capacity, R&D capabilities and talent. I am excited to see our customers worldwide benefit from this partnership.”
John Televantos, a partner at Arsenal and co-head of its Specialty Industrials Group, added: “Peterson Chemical has been a leading innovator in the polyurethane foam sector. We are delighted to support Bruce and his team with greater focus on future innovations. Our intent is to commercialize new products more effectively around the world for the benefit of the bedding industry and the broader polyurethane market.”