Arsenal Capital Partners, a private equity firm that invests in middle-market specialty industrial and healthcare companies, has acquired Kel-Tech Inc., which provides specialty oilfield chemicals and related services to production, field stimulation, and drilling operations in the oil and gas market, specifically in the Permian Basin.
The investment in Kel-Tech follows Arsenal's recent acquisition of Flowchem Ltd., a specialty chemical provider to the pipeline industry.
"The Kel-tech deal builds on Arsenal's exposure to the oil and gas market after our recent acquisition of Flowchem,” said Shawn Abrams, an operating partner in Arsenal's Specialty Industrials practice. “We see the Permian region as a leading source of growth in US oil production, and the company's services will be crucial to support this trend."
PPHB acted as financial advisor, and Todd, Barron, Thomason, Hudman & Baxter PC acted as legal advisor to Kel-Tech. Syntal Capital Partners acted as financial advisor to the Keller family. Kirkland & Ellis LLP acted as legal advisor to Arsenal. KeyBanc Capital Markets and Madison Capital Funding LLC provided senior debt financing, and funds managed by Sankaty Advisors, and Metropolitan Life Insurance Co. provided subordinated debt financing for the transaction.