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April 06, 2006 12:00 AM

Royal buys industrial business of Basic Adhesives

Utech Staff
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    South Bend, Indiana-In its fourth acquisition in 18 months, Royal Adhesives & Sealants llc of South Bend announced 6 April that it has bought Basic Adhesives Inc.'s industrial water-based adhesives product line.

    Royal Adhesives & Sealants said that in the deal it has acquired products consisting of urethane, acrylic latex, natural rubber, SBR and Neoprene water-based adhesives. This product range is primarily sold to the flexible packaging market, the group added.

    This acquisition follows those of ESC Adhesives in December 2004, Hardman Adhesives in June 2005 and J&R industries in December 2005, said Ted Clark, ceo of Royal, in the company announcement. "All four acquisitions fit our strategy to acquire adhesives and sealants businesses focused on industrial market applications requiring added-value adhesives and sealants, Clark continued.

    These additions have given Royal Adhesives and Sealants "a very balanced portfolio of water-based, reactive and solvent-based adhesives and sealant products and technologies to offer our customers," Clark concluded.

    Royal aims to transfer production of these materials to a new 2500 sq. manufacturing centre within its 24000 sq.m. South Bend Indiana operation. The firm said this unit is a "state of the art" facility for making water-based adhesives. Until the transition is complete, Basic Adhesives will continue to manufacture the products.

    Brooklyn, New York-based Basic Adhesives intends to focus on "its leather products and the fast-growing Dritac flooring adhesives business," said Yale Block, president of Basic, in the statement from Royal.

    For Royal, the water-based products allows a move into the fast growing flexible packaging market, adding to list niche industrial markets the group serves, said Steven Zens, vice-president of sales and marketing with Royal.

    "

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