Stout Advises Arcane Capital Partners on the Acquisition of Petroflex

January 24, 2024

Stout advised Arcane Capital Partners on its acquisition of Petroflex North America from Transition Capital Partners. The transaction closed in December 2023. Stout served as the exclusive buy-side financial advisor to Arcane in connection with the Petroflex transaction.

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, Arcane 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.

Founded in 1983 and headquartered in Gainesville, Texas, Petroflex is a manufacturer of superior quality, continuous length HDPE (high-density polyethylene) conduit and accessories made from significant recycled content, primarily serving the electric utility, renewables (wind and solar), irrigation, telecommunications, and data/voice sectors.

“We are very pleased with this transaction and see the company as a great addition to our business. We’ve added significant manufacturing experience to our team, and 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.

Stout sold Arcane its third plastics business, PolyTech Plastic Molding, in December 2022 and has since witnessed Arcane’s growth in the plastics sector firsthand.

“We are delighted to have supported Arcane’s continued efforts in growing their portfolio in the plastics manufacturing space with the addition of Petroflex. This acquisition will further assist Arcane’s diversification efforts and their ability to expand process technologies while building an industry-leading plastics platform. We are looking forward to the next chapter of growth for Arcane’s businesses,” said Michael Benson, Managing Director at Stout.

Stout’s Michael Benson, Kevin Mayer, Steve Simone, Irune Andres, and Evan Theros led the execution of the transaction.

Kutak Rock LLP served as legal counsel to Arcane. Winston & Strawn LLP served as legal counsel to Petroflex and TCP.

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