American Securities to Acquire Royal Adhesives
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American Securities to Acquire Royal Adhesives

royal adhesives nf1American Securities has agreed to acquire Royal Adhesives and Sealants from Arsenal Capital Partners. The transaction is expected to close in June of 2015.

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).

During the term of Arsenal’s ownership the company made eight add-on acquisitions.  The latest add-on, completed earlier this month, was the buy of Chemical Innovations (CIL) from the Vita Group.  CIL is a developer and manufacturer of rubber to metal, rubber to plastic, rubber to fabric and rubber to glass bonding adhesives used in automotive and industrial applications. The company is based northeast of Liverpool in Preston, UK (www.cilbond.com).

John Televantos nf2“We are proud of the transformation of Royal over the last four years from a small regional adhesives and sealants company to a leading global player,” said John Televantos, a Partner who co-heads Arsenal’s Specialty Industrials practice. “Through an ambitious organic growth strategy and the completion of eight strategic acquisitions, the company has become a leading global producer of adhesives and sealants with broad technologies serving high growth end markets. We have been very pleased with our partnership with CEO Ted Clark and his management team to create a market leader.”

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).

Scott Wolff nf1Managing Director Scott Wolff led the transaction for American Securities.  “We believe that Royal’s commitment to product innovation, combined with its experienced and customer-focused management team, positions Royal for a strong future.  We look forward to bringing our resources to bear to support CEO Ted Clark and his team’s continued success.”

American Securities invests in businesses with $200 million to $2 billion of revenue and $50 million to $200 million of EBITDA.  Sectors of interest include industrial manufacturing, specialty chemicals, aerospace and defense, energy, business services, healthcare, media, restaurants, and consumer products. The firm has more than $15 billion of capital under management and has offices in New York and Shanghai (www.american-securities.com).

© 2015 PEPD • Private Equity’s Leading News Magazine • 4-27-15

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