New York -- Arsenal Capital Partners' Royal subsidiary is accelerating its growth in the CASE polyurethane segment with a purchase in Canada .
South Bend, Ind.-headquartered Royal Adhesives & Sealants' Canadian operation plans to buy almost all of the assets of Chemque, a polyurethane foams and adhesives maker based in Toronto, Canada.
Royal Adhesives is part of Arsenal Capital group, which made numerous acquisitions in 2013 and several so far this year. Financial terms for the latest deal were not released.
Royal is acquiring Chemque to expand its growing platform of adhesive, sealant and coating products.
It's the company's seventh acquisition since 2010, not long after it was purchased by Arsenal Capital.
Chemque will continue to operate out of Toronto plant and its management team and work force of about 70 will stay with the business, a spokesman said.
Chemque has been in business for 41 years and primarily serves the telecom, flooring and construction markets. The time is right for the company to become part of a larger organization “with the same operating philosophy and where we have a great market fit,” Chemque ceo Alex Botrie said.
The addition of Chemque will broaden Royal's capability for polyurethane adhesives, potting compounds and foams, said Royal ceo Ted Clark.
“We continue to identify leading niche companies that will enhance our product offerings to the markets in which we have chosen to compete,” he said.
Merging Chemque with Royal represents another opportunity to build a leading adhesives, sealants and coatings business featuring customised and proprietary products, according to Tim Zappala, a partner at Arsenal Capital. Chemque provides specialized packaging for the construction, utility and assembly markets.
Royal is being built “by selectively identifying niche acquisitions in this specialty sub sector where we can apply our deep industry knowledge to achieve enhanced growth,” John Televantos, a partner at New York-headquartered Arsenal Capital added.
By Mike McNulty
This story first appeared in Rubber and Plastics News.
