Arsenal Capital Partners has completed the previously announced acquisition of ADCO Global, a manufacturer of specialty adhesives, sealants and tapes, from Aurora Capital Group. Simultaneous with the closing, ADCO has merged with Royal Adhesives and Sealants, Arsenal’s adhesives and sealants platform investment which it acquired in 2010.
“ADCO Global has a long history of innovation providing great solutions and service to its customers. The acquisition of ADCO Global and subsequent merger into Royal represents an important milestone in our strategy to further build a leading adhesives, sealants and coatings business offering customized and proprietary solutions. The combination of Royal and ADCO Global will create a top ten global supplier of adhesives and sealants with sales approaching $600 million annually,” said John Televantos, a Partner at Arsenal Capital Partners and co-head of the firm’s Specialty Industrials Group.
ADCO Global is a supplier of specialty adhesives, sealants, tapes, aAdd Mediand coatings serving the construction, transportation, and industrial markets. The company’s products are used in glass window, commercial roofing, solar panel, bus, truck, trailer, recreational vehicle, automotive, marine, civil engineering, telecommunications, security glass and general construction applications. The company is headquartered in Lincolnshire, IL (www.adcoglobal.com).
“ADCO Global is a well managed business that fits well with Royal given its complementary product lines and its global footprint. This merger will provide more enhanced and global capabilities to our customers,” said Tim Zappala, a Partner at Arsenal Capital Partners and co-head of the firm’s Specialty Industrials Group.
Royal Adhesives and Sealants is a producer of proprietary, high-performance adhesives and sealants used in aerospace and defense, construction, specialty packaging, automotive and industrial applications. The company is headquartered in South Bend, IN (www.royaladhesives.com).
Ted Clark, President and Chief Executive Officer of Royal, will continue as President and Chief Executive Officer of the combined business. John Knox, the current Chairman, President and Chief Executive Officer of ADCO Global, will join the Board of Directors of Royal as a Non-executive Chairman.
Arsenal Capital Partners invests in middle-market specialty industrial and healthcare companies that have $50 million to $250 million in enterprise value. Industries of specific interest include specialty & fine chemicals; segments of healthcare; transportation and logistics; power generation; aerospace & defense; and process industry components and services. Arsenal has over $2 billion of committed capital under management. The firm was founded in 2000 and has offices in New York and Shanghai (www.arsenalcapital.com).
The seller of ADCO Global, Aurora Capital, focuses principally on control-investments in middle-market industrial, manufacturing and service oriented businesses. The firm has $2 billion of capital under management and is located in Los Angeles (www.auroracap.com).
The Valence Group acted as financial advisor and DLA Piper acted as legal advisor to Arsenal and Royal.
© 2013 PEPD • Private Equity’s Leading News Magazine • 8-1-13
