Arsenal On-boards Industrials Specialist

New operating partner Michael Huff brings decades of experience to the firm’s specialty industrials group.

Industrials and healthcare specialist Arsenal Capital Partners has hired Michael Huff as an operating partner to work within the firm’s specialty industrials group, tapping into his long career in the sector.

Huff has held operating positions with numerous large companies in the industrials industry. Prior to joining the New York–based middle-market private equity firm, Huff was president and CEO of Citadel Plastic Holdings, Inc. He spent the bulk of his career—more than 20 years—in various operational roles at GE Plastics.

The new hire makes sense for Arsenal. The firm has been raising Fund IV with a target of $1.25B, and it’s expected to close soon. The target is significantly larger than its last fund. In 2013, Arsenal Capital Partners completed a successful fundraise for Arsenal Capital Fund III LP, closing with $875M of committed capital. The capital raised will be used to invest in companies that fit into Arsenal’s exclusive focus on lower-middle-market transactions between $50M and $250M of enterprise value.

With a larger fund size, it is only natural Arsenal will need more talent to create value at portfolio companies. The firm currently has 12 operating partners, and Huff will have primary oversight responsibility for operations in the industrials group.

“We are always looking for great talent, and we have known Mike for some time,” says John Televantos, a partner who co-heads Arsenal’s specialty industrials group. “He is well-known in the industry, has great breadth and depth of experience, and has operated a company under private equity ownership, which is a positive. We met with Mike several times and confirmed he would be a great fit, and he liked our philosophy as well.”

Citadel Plastic was owned by middle-market firm HGGC and Charlesbank Capital Partners until June 2015, when global plastics supplier A. Schulman bought the company for $800M. Citadel grew revenue and EBITDA by roughly 70 percent, and HGGC credits Huff with much of the company’s success.

Huff is already busy at Arsenal. The firm has made twice as many investments in the specialty chemical industry as other private equity firms have in the last five years. Currently the firm has two companies under letter of intent.

“The thoughtful and collaborative approach demonstrated by Arsenal is a great fit, and I am energized about the great potential we can realize together,” says Huff. “I look forward to driving additional enterprise value at Arsenal’s portfolio companies.”

Arsenal’s specialty industrials investments include Kel-Tech, a provider of specialty chemicals and related services to oil and gas exploration and production companies; Flowchem, a provider of patented and environmentally friendly drag-reducing additive solutions and support services to crude oil and refined-products pipeline operators; and Chromaflo Technologies, the largest independent global pigment-dispersion provider to the architectural and industrial coatings and thermoset-composites industries, among others.