Adhesives Company Makes Acquisition
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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowA subsidiary of South Bend-based Royal Adhesives & Sealants LLC has acquired a Canadian company. Chief Executive Officer Ted Clark says the deal for Toronto-based Chemque adds new adhesives and foams to its “growing portfolio.”
September 2, 2014
News Release
South Bend, Ind. — Royal Adhesives & Sealants LLC (Royal) a portfolio company of Arsenal Capital Partners (Arsenal) announced that its subsidiary Royal Adhesives & Sealants Canada LTD will acquire substantially all of the assets of Chemque.
Chemque, based in Toronto Canada, is a major supplier of polyurethane foams and adhesives to the telecom, flooring and construction markets. This acquisition builds on Royal's strong platform of leading adhesive, sealant and coating solutions.
“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.”
Tim Zappala, a Partner at Arsenal Capital said, “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.”
Chemque Chief Executive Officer Alex Botrie stated, “Chemque's success and growth over the past 41 years was the direct result of offering advanced technology, exemplary service, and customized products and application solutions. The time is now right for Chemque to be part of a larger organization with the same operating philosophy and where we have a great market fit. The company is now better positioned to continue offering the customer support and service going forward that our customers demand.”
John Televantos, a Partner at Arsenal Capital, said, “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. We built a global top ten adhesives and sealant company that is becoming a leading competitor on a global scale.”
Since its acquisition by Arsenal, Royal has grown organically and via acquisition. This is the company's seventh add-on acquisition since 2010.
About Chemque
Chemque based in Rexdale, Canada is a specialty adhesive manufacturer that has been in business for 41 years. The company is ISO 9001 certified and produces quality polyurethane adhesives, sealants and application equipment. Chemque also provides specialized packaging for the construction, utility and assembly markets.
About Royal Adhesives & Sealants
Royal Adhesives & Sealants is a leading producer of proprietary, high-performance adhesives, sealants, coatings and polymers. Headquartered in South Bend, Indiana, Royal offers a broad range of specialty formulated products designed to solve complex bonding, laminating and sealing applications across a diverse range of markets, including aerospace and defense, construction, specialty packaging, automotive and industrial. The company offers a broad spectrum of customized thermosetting epoxy and urethane, solvent-based and water-based technologies to meet the most demanding adhesive and sealant applications. For additional information about Royal Adhesives & Sealants, please visit www.royaladhesives.com.
About Arsenal Capital Partners
Arsenal Capital Partners is a leading New York-based private equity firm that invests in middle market healthcare and specialty industrial companies. Arsenal makes investments in sectors where the firm has significant prior knowledge and experience. Arsenal targets businesses that have the potential for further value creation by working closely with management to accelerate growth and leverage the firm's operational improvement capabilities. Arsenal currently has $1.7 billion of committed equity capital. For additional information on Arsenal Capital Partners, please visit www.arsenalcapital.com.
Source: Royal Adhesives & Sealants