Arsenal Capital to acquire Evonik colorants business

US private equity firm Arsenal Capital Partners has entered into an agreement to purchase the global colorants business from Evonik Industries.

Evonik's colorants business develops, produces and markets the Colortrend brand of paints for decorative end-use applications in the architecture sector.

Evonik also makes Chroma-Chem products for use in industrial applications such as maintenance, marine and timber coatings.

Arsenal specialty industrials group co-head and partner John Televantos said: "We are delighted with the opportunity to acquire a leading global business in the colorants space. The business has a strong reputation because of its people, technology, quality and service.

"It provides a great platform to build a stronger global business in a sector that we understand and believe it will perform well as an independent company benefiting from Arsenal's resources and expertise.

"We look forward to supporting and building the business organically and with strategic acquisitions that will further expand its network."

The transaction is scheduled to be closed in April 2012.

Evonik's production plants are located in Lockland, Ohio, US; Maastricht, Netherlands; Dandenong, Australia and Brampton, Canada.

Arsenal Capital said it makes investments in chemical, middle-market specialty industrial, healthcare and financial services companies with revenues ranging from $30m to $400m.