NEW YORK-Arsenal Capital Partners plans to buy specialty polyurethane components firm ADCO Global Inc, its third announced purchase in two months.
ADCO makes specialty adhesives, sealants, tapes and coatings. The company, which uses polyurethane elastomers, serves the construction, transportation and industrial markets. It has 10 plants across the globe.
The firm's operations are located in the US, UK, Germany, Russia and China.
Arsenal is a private equity firm based in New York with funds of $2bn under management. It plans to acquire ADCO Global Inc. from Los Angeles-headquartered Aurora Capital Group, another investment firm, for an undisclosed sum.
ADCO's products are aimed at applications, including insulating glass windows, roofing, solar panels, automotive, buses, trailers, RVs, marine, civil engineering, telecommunications, security glass and general construction.
ADCO, headquartered in Lincolnshire, Illinois, will retain its name. Arsenal said it is not clear where ADCO will fit into its portfoilo.
The transaction is subject to regulatory approval and other customary closing conditions. The deal is expected to close in the third quarter.
Its management team, factories and work force of about 1,000 are expected to remain in place, he said.
John Knox, ADCO chairman, president and CEO, said Aurora has an outstanding track record of helping specialty chemical businesses grow and expand.
He noted ADCO has expanded its position globally with its innovative products, and "Arsenal is well suited to support ADCO's continued growth." in September 2010.
Arsenal, manages over $2 billion of capital across several private equity funds. It acquired ADCO because "we like the formulated products sector," the spokesman said.
John Televantos, a partner at Arsenal and co-head of the firm's Specialty Industrials Group, said ADCO "has a long history of innovation, providing great solutions and service to its diverse customers."
The acquisition is the third Arsenal has made in two months. In early May, it bought . and ., which makes polyurethane tyre fill material.
Both were moved under Dash Multi-Corp., a platform portfolio company of Arsenal, as part of the Dash Polyurethane Systems business unit.
The transactions made Dash a major player in the polyurethane tire flat proofing industry.
Dash was purchased by the private equity firm in December 2012, one of five acquisitions made by Arsenal last year.
by Mike McNulty, Rubber & Plastics News.