Arcane Capital Partners continues plastics consolidation with two strategic acquisitions exceeding $100 mm

LITTLE ROCK, Ark., Jan. 16, 2024 /PRNewswire/ -- Arcane Capital Partners, an Arkansas-based, privately-held investment firm dedicated to shaping the future of industries, has acquired Petroflex North America based in Gainesville, Texas and Wescon Plastics, LLC based in Wichita, Kansas. This brings Arcane's growing portfolio to five acquired companies since December 2021.

"We are very pleased with this transaction and see these companies as great additions to our business. We've added significant manufacturing experience to our team, increased production capacity and in-house recycling capabilities, while also broadening our geographic footprint. I am proud of what our team has accomplished in moving our business forward and grateful for the partnerships we have created through this process," said Arcane's Managing Partner and CEO Michael Hickmon.

Senior bank financing was provided by JPMorgan Chase & Co. through syndication with PNC Financial Services and Regions Financial Corporation. Additional transaction financing was provided by Aventurine Partners in the form of preferred equity. Markus Specks, Partner and CEO at Aventurine, will join Arcane's Board of Directors. "We're excited to partner with Arcane in a shared vision to decarbonize established industrial sectors. The Arcane family of companies manufactures key products that contribute to renewable power proliferation and utility grid upgrades. Additionally, in-house recycling operations deliver measurable decarbonization today, pairing several of our core investment theses," noted Specks. Hickmon added, "We could not have asked for better lending and financing partners and are excited about the future of the business. Finding and securing great financial partners is affirmation of their belief in the work we're doing that will ultimately reshape an industry and the positive impact we'll make through optimizing these acquisitions."

Arcane was advised by Stout Investment Bank and Mount Vernon Capital, LLC on financial matters related to the transaction. Kutak Rock LLP served as legal representation for Arcane. Vinson & Elkins LLP advised Aventurine.

About Arcane Capital Partners

Arcane Capital Partners is a privately held investment firm that specializes in investing in people and exceptional businesses operating in cutting-edge industries. Arcane seeks out opportunities in emerging markets and disruptive technologies. By providing strategic guidance and financial support, the company aims to nurture and grow these businesses, helping them reach their full potential. With a track record of successful investments and a commitment to innovation, Arcane is dedicated to shaping the future of industries and driving positive change in the market.

About Petroflex

Based in Gainesville, TX, Petroflex manufactures superior quality, continuous length HDPE (High Density Polyethylene) conduit and accessories made from significant recycled content, primarily serving the Electric Utility, Renewables (Wind & Solar), Irrigation, Telecommunications and Data/Voice industries. In addition to offering a wide variety of colors and standard conduit sizes from 13mm to 6", Petroflex also provides custom configurations to meet almost any installation requirement. For more information, please visit www.petroflexna.com

About Wescon

Based in Wichita, KS, Wescon Plastics has been in operation since 1972. Wescon specializes in engineered resins to make tight tolerance products for end-use across Energy, Heavy Equipment, Electrical, Batteries, HVAC, and Recreation Vehicles. Wescon provides end-to-end services from engineering and design support through final assembly. Wescon also provides molding and tooling support to ensure long-life cycle production.

SOURCE Arcane