Meridian Adhesives Group, a portfolio company of Arsenal Capital Partners, has acquired W.F. Taylor, LLC, from Dominus Capital.
W.F. Taylor, acquired by Dominus from Grace Matthews in April 2015, is a manufacturer and marketer of flooring adhesives for use with carpet – including carpet tile and broadloom; hard surfaces – including luxury vinyl tile and plank, wood, sheet vinyl and rubber; and for other specialty applications such as moisture mitigation and sound reduction.
In May 2018, Arsenal formed Meridian Adhesives Group as a new platform to acquire adhesives and sealants companies with a specific interest in high-value adhesives technologies. The first acquisition of Meridian was the buy of Pompano Beach, FL-based Adhesives Technology Corporation, a manufacturer of specialty adhesives for the infrastructure and construction industries (www.atcepoxy.com). In June 2018, Meridian then acquired Billerica, MA-based Epoxy Technology, Inc., a manufacturer of high-performance specialty epoxy, ultraviolet, and hybrid adhesives (www.epotek.com).
The acquisition of Taylor adds specialty flooring adhesives to Meridian’s portfolio which today includes high-performance specialty epoxy, polyurethane, and hybrid adhesives for the electronics, medical, construction, and infrastructure markets. “Consistent with our strategy to build Meridian with technology leaders, Taylor has become a category leader delivering new technologies and product innovations to the flooring adhesives market for decades,” said Roy Seroussi, an Investment Partner of Arsenal.
W.F. Taylor, led by CEO Dan Pelton, has manufacturing facilities in Dalton, GA (headquarters) and Fontana, CA (www.wftaylor.com). Mr. Pelton has been named as the new CEO of Meridian Adhesives Group.
Arsenal has significant experience in the $60 billion global adhesives and sealants market. Beginning in November 2010, Arsenal launched South Bend, IN-based Royal Adhesives and Sealants and through a series of nine acquisitions created a top ten global supplier of adhesives and sealants with annual revenues in excess of $600 million. American Securities acquired Royal Adhesives and Sealants from Arsenal in June 2015 and, after a brief hold, sold it in October 2017 to publicly-traded H.B. Fuller (NYSE: FUL) for $1.6 billion. Arsenal invests in middle-market specialty industrial and healthcare companies that have from $100 million to $500 million in enterprise value. The firm was founded in 2000 and has offices in New York and Shanghai (www.arsenalcapital.com).
Dominus Capital, the seller of Taylor, makes control equity investments in North American middle market companies that have at least $10 million of EBITDA. Sectors of interest include business services, consumer products and services, and light industrial. Dominus Capital is headquartered in New York (www.dominuscap.com).
“Taylor is very representative of the typical Dominus transaction,” said Gary Binning, Managing Partner of Dominus. “When Dominus acquired the family-owned Taylor, it was a strong player in the niche market for flooring adhesives and had the potential for significant growth. Dominus was able to bring significant resources to professionalize the business and grow organically.”
Lazard Middle Market was the financial advisor to W.F. Taylor on this transaction.
© 2018 Private Equity Professional | September 26, 2018