New York-based private equity group Arsenal Capital Partners has signed a definitive agreement to acquire Cyalume Technologies Holdings for $45 million in cash.

Headquartered in Fort Lauderdale, Florida, USA, Cyalume is a producer of specialty chemicals, active pharmaceutical intermediates (APIs), complex long chain polymers and chemical light products. The company also performs sub-contract manufacturing of products used in pharmaceutical, medical, commercial and military markets. It has manufacturing plants in West Springfield, Massachusetts and Bound Brook, New Jersey in the US as well as a subsidiary in Aix-en-Provence in France.

Cyalume’s chief operating officer, Dale Baker, said that with Arsenal’s strategic and financial support, the company will be able to significantly accelerate its growth in the specialty chemical, pharmaceutical and medical product markets.

“Given its robust portfolio of technologies, we expect that Cyalume will serve as a platform for further acquisitions in the specialty chemicals and performance polymers sector,” added Sal Gagliardo, industry and operations partner at Arsenal.

The deal is expected to close in September, subject to satisfying certain closing conditions. The acquisition has the approval of Cyalume’s board of directors as well as the necessary endorsement from stockholders.  Cyalume’s management team will remain in place once the transaction has completed.