Arsenal invests in Elite Foam and agrees to buy HSM's foam production assets
US-based equity firm Arsenal Capital Partners (Arsenal) has made an investment, the amount of which has not been disclosed, in Elite Foam, a specialty flexible polyurethane foam manufacturer for the bedding and home furnishings industry.
Arsenal, which is involved in investing in middle-market specialty industrial and healthcare companies, has also signed a definitive agreement with Hickory Springs Manufacturing Company (HSM) to buy its foam production assets, HSM Foam.
The deal is subject to customary conditions to closing and is expected to be complete by the second quarter of this year.
During the first part of this month, the company announced its investment in Pacific Urethanes, which also develops and makes specialty polyurethane foam materials.
Following the completion of all three of the deals, the foam production assets of Pacific Urethanes, Elite Foam and HSM will be merged under the name of Elite Comfort Solutions to form one single specialty foam platform.
Elite Foam president Pete Wallace said: "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."
With the formation of Elite Comfort Solutions, Elite Foam aims to serve its current customers across the US and provide technologies on a broader scale to new and evolving industries.
Elite Foam's portfolio of technologies includes high air flow and convective cooling of open cell foam through the CoolFlow brand and conductive cooling of foams through the ThermaGel brand.
Currently, HSM Foam, which produces flexible polyurethane foam in North America, has operations in North Carolina, Arkansas, Mississippi, California, and Georgia.
The company provides several foam formulations for furniture, bedding, medical and packaging market applications.
HSM chairman David Underdown said: "HSM will remain a major fabricator of foam products for its existing as well as new customers in the furniture, bedding, medical and packaging markets.
"This transaction will enable HSM to strengthen its leading market positions in its transportation seating, foam fabrication, specialty spring, wire and metal products businesses."
Following its creation, Elite Comfort Solutions will have an initial national network of ten production facilities and the management teams at each of the three businesses will continue to operate under Elite Comfort Solutions.