SWM (NYSE: SWM) is buying Wind Point Partners-backed coatings business Argotec LLC for $280 million, adding to deal activity in the sector.

Argotec, headquartered in Greenfield, Massachusetts, produces highly-engineered urethane films for surface protection, glass lamination and medical products. The business has about $115 million in annual revenue and Ebitda margins near 20 percent, according to the company.

Chicago PE firm Wind Point bought Argotec in 2013.The firm added Steven Urethane in 2014, which also makes polyurethane sheet and film products. Wind Point's recent deals include the acquisition of Gehl Foods' dairy business, and sale of Hearthside Food Solutions to Goldman Sachs (NYSE: GS) and Vestar Capital Partners.

The deal comes as SWM pushes away from its core tobacco business. The company has made a handful of other diversification acquisitions, including DelStar, which makes plastic parts used for filtration, in 2013. The Alpharetta, Georgia-based company also makes cigarette papers, cigar wrappers, reconstituted tobacco leaves and commercial and industrial products.

Moelis & Co. was SWM's financial adviser, and Sidley Austin LLP was legal counsel. Pepper Hamilton LLP was Argotec's legal adviser.

There have been several deals in the coatings sector recently, including Arsenal Capital-backed Accella Performance Materials' deal for Burtin Polymer Labs and Coating and Foam Solutions, and PPG Industries (NYSE: PPG) planned purchase of Chemfil Canada Inc., which makes pretreatment products for the automotive and industrial markets.

PPG won Mergers & Acquisitions M&A Mid-Market Strategic Buyer of the Year Award for 2014 after making a handful of middle-market coatings and sealants acquisitions. For more on deal activity in the sector, see Innovations in Coatings and Sealants Spark M&A

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