Arsenal Acquires Chemque
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Arsenal Acquires Chemque

chemque nfRoyal Adhesives & Sealants, a portfolio company of Arsenal Capital Partners, will acquire the assets of Chemque, a producer of polyurethane foams and adhesives.  The acquisition of Chemque is Royal’s seventh add-on acquisition since being acquired by Arsenal in November 2010.

Chemque is a producer of polyurethane foams and adhesives used in the telecom, flooring and construction markets.  Chemque also provides specialized packaging for the construction, utility and assembly markets.  The company was founded in 1973 and is based in the Toronto suburb of Rexdale (www.chemque.com).

Tim Zappala nf1“Chemque has a long history supplying adhesives to the demanding telecom, flooring and construction markets. The acquisition of Chemque and merger with Royal represents another important milestone in our strategy to further build a leading adhesives, sealants and coatings business offering customized and proprietary solutions,” said Tim Zappala, a Partner at Arsenal Capital.

Royal Adhesives and Sealants, acquired by Arsenal in November 2010, is a producer of proprietary, high-performance adhesives and sealants and other formulated products used in aerospace and defense, construction, personal care, graphic arts, specialty packaging, automotive and industrial applications.  The company is headquartered in South Bend, IN (www.royaladhesives.com).

“We continue to identify leading niche companies that will enhance our product offerings to the markets in which we have chosen to compete. The addition of Chemque will broaden our technical capability for polyurethane adhesives, potting compounds and foams,” said Ted Clark, Chief Executive Officer of Royal. “Chemque’s polyurethane adhesives and foams will add to our growing portfolio of leading adhesives and sealants technologies and we look forward to working with the Chemque team to successfully integrate the Chemque business into Royal.”

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 $1.7 billion of committed capital under management. The firm was founded in 2000 and has offices in New York and Shanghai (www.arsenalcapital.com).

john televantos nf1“We are building Royal in part by selectively identifying niche acquisitions in this specialty sub sector where we can apply our deep industry knowledge to achieve enhanced growth,” said John Televantos, a Partner at Arsenal Capital.  “We have built a global top ten adhesives and sealant company that is becoming a leading competitor on a global scale.”

Royal will complete the acquisition of Chemque through its Canadian subsidiary, Royal Adhesives & Sealants Canada Ltd.

2014 PEPD • Private Equity’s Leading News Magazine • 9-4-14

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