adhesives

Meridian Adhesives Group, a portfolio company of Arsenal Capital Partners, has acquired Evans Adhesive.

Evans Adhesive is a manufacturer of industrial adhesives including low-temperature packaging hot melts, pressure-sensitive hot melts, and various water-based and palletizing adhesives. Evans water-based adhesives are used in packaging, converting, laminating, labeling, drywall and outdoor advertising.

Evans was founded in 1900 and incorporated in 1902 as The Commercial Paste Company and has been owned by the Evans family since 1920. The company, led by President Rusty Thompson, is headquartered in Columbus, OH with additional manufacturing facilities near Los Angeles in Rancho Cucamonga, CA (www.evansadhesive.com).

“We are delighted to have Rusty and his employee base join the Meridian family.  Evans Adhesive has been an innovator in the sector for decades and we look forward to expanding the business through investments and acquisitions,” said Roy Seroussi, an Investment Partner at Arsenal.

The buy of Evans Adhesive is Meridian’s fourth acquisition in 2018. In May 2018, Arsenal formed Meridian 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). Then in June 2018, Meridian acquired Billerica, MA-based Epoxy Technology, a manufacturer of high-performance specialty epoxy, ultraviolet, and hybrid adhesives (www.epotek.com); and in September 2018 it acquired Dalton, GA-based W.F. Taylor, a manufacturer and marketer of flooring adhesives (www.wftaylor.com). As a result of these acquisitions, Meridian is now a manufacturer of adhesives and sealants including high-performance specialty epoxy, polyurethane, and hybrid adhesives used in the electronics, medical, construction, and infrastructure markets.

“Evans Adhesive’s portfolio of technologies, well-known brands and customer intimacy culture fits with Meridian’s philosophy and strategy,” said Dan Pelton, CEO of Meridian. “This acquisition adds another avenue for driving technology across the Meridian platform.”

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 has offices in New York and Shanghai (www.arsenalcapital.com).

© 2018 Private Equity Professional | December 12, 2018

IPS Corporation, a portfolio company of Nautic Partners, has acquired Integra Adhesives from its founder and President, Doug Turner, and other shareholders. The buy of Integra is the 5th add-on acquisition IPS has completed since it became a Nautic portfolio company in February 2015.

Integra Adhesives is a manufacturer of specialty adhesives used to permanently bind engineered stone, natural stone, quartz, and solid-surface building products and interior finishes such as countertops. The company’s adhesives are based on methacrylate (a derivate of methacrylic acid – a colorless, viscous liquid), epoxy, and polyurethane-based formulations. The growing use of engineered stone for countertops is increasing the demands for Integra’s products. The company is headquartered near Vancouver in Abbotsford, BC (www.integra-adhesives.com).

IPS Corporation is a maker of adhesives, solvent cements, and other components and supplies used in the plumbing, construction and plastic fabrication industries.  Company brand names include Weld-On, Water-Tite, Test-Tite, Guy Gray, TrueBro, Studor, and SciGrip. IPS has operations throughout the United States, Europe, and Asia. The company was founded in 1954 and is headquartered south of Los Angeles in Compton, CA (www.ipscorp.com).

The operations of Integra will be merged with IPS’ SciGrip division, which also makes methacrylate-based adhesives for countertop materials, boat and marine components, outdoor signs, and in-store trade displays.

“We have tremendous respect for Integra and Doug Turner, who has built Integra’s #1 position in engineered-stone adhesives through constant innovation and an unwavering commitment to product quality and customer service – both of which are values central to our philosophy at IPS,” said Tracy Bilbrough, CEO of IPS.

Nautic Partners is a middle-market private equity firm with over $2.5 billion of equity capital under management. Nautic targets majority equity investments of $25 million to $75 million. Sectors of interest include business services, manufacturing, and healthcare. The firm was founded in 1986 and is headquartered in Providence, RI (www.nautic.com).

In December 2015, Nautic completed fund raising for Nautic Partners VIII at the hard cap of $900 million. Nautic began fund raising in October 2015 and raised its cap to $900 million after receiving strong demand from both new and existing investors. IPS is a portfolio company of Nautic Partners VII which closed in June 2014.

© 2016 Private Equity Professional • Private Equity’s Leading News Magazine • 4-6-16

Royal Adhesives & Sealants, a portfolio company of Arsenal Capital Partners, has acquired Chemical Innovations Ltd. from the Vita Group.

Chemical Innovations Ltd. (CIL) is a developer and manufacturer of high performance rubber to metal, rubber to plastic, rubber to fabric and rubber to glass bonding adhesives for high performance automotive and industrial applications, including anti-vibration, hoses and belting and friction products.  CIL sells its products in over 50 countries through a network of over 40 distributors. The company is based northeast of Liverpool in Preston, UK (www.cilbond.com).

“We are excited to acquire a leader in a technology that complements and adds to our already broad line of adhesives and sealants,” said Ted Clark, Chief Executive Officer of Royal.  “CIL, like Royal, works closely with customers to provide adhesives solutions that enhance and add value to our customer’s products. We can help develop the global market though our global team of adhesives and sealants application professionals.”

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).

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).

© 2015 PEPD • Private Equity’s Leading News Magazine • 4-2-15