Arsenal Capital Partners has acquired color companies Carolina Color Corp. and Breen Color Concentrates. Management teams from both companies invested alongside the private equity firm.

Carolina and Breen both make color chemicals serving the plastics, packaging and consumer sectors. In 2016, Breen acquired Hudson Color Centrates to expand its presence in the Northeast and Midwest. Carolina is based Salisbury, North Carolina while Breen is located in Lambertvill, New Jersey.

"We look forward to continue their track records of growth through both organic initiatives, as well as building through strategic acquisitions to further expand the platform’s product and service offering," says Arsenal partner Tim Zappala. Stout Risius Ross Advisors advised Arsenal. Financial terms were not disclosed. Arsenal received financing from Twin Brook.

Established in 2000, Arsenal is a lower middle-market private equity firm that targets industrial and healthcare companies with up to $500 million in enterprise value. The New York-based PE firm has raised approximately $3 billion institutional equity investment funds since inception. Arsenal has been active lately. In 2017 alone, the firm sold chemical company Flowchem to KMG Chemicals Inc. (NYSE: KMG) for $495 million and bought specialty polymer producer MFG Chemical Inc.

The middle-market continues to see robust activity in the chemicals sector. Huron Capital formed Brudner Polyme to pursue investments in the space; Other deals include: Ingevity Corp.’s (NYSE: NGVT) acquisition of Georgia-Pacific’s pine chemicals business for $315 million and Littlejohn’s purchase of Cornerstone Chemical Co.