Private equity firm Arsenal Capital Partners has sold off a plastics-related business for the second time in six months.
This time, Arsenal has sold Royal Adhesives and Sealants LLC of South Bend, Ind., to American Securities LLC, a New York-based private equity firm. No purchase price was disclosed in an April 27 news release announcing the deal.
Royal makes a broad range of specialty formulated products, including some based on epoxy and urethane. “We are proud of the transformation of Royal over the last four years from a small regional adhesives and sealants company to a leading global player,” Arsenal partner John Televantos said in the release.
Royal President and CEO Ted Clark added that American “is ideally positioned to support our next phase of growth and development.” American managing director Scott Wolff said that his firm “looks forward to bringing out resources to bear to support [Clark] and his team for Royal's continued success.”
This is the third plastics deal in 18 months for American, which still also owns a stake in Advance Drainage Systems Inc., the Hilliard, Ohio, firm that ranks as one of North America's largest plastic pipe makers. ADS went public in 2014.
In November 2013, American bought specialty plastic films maker Tekni-Plex Inc. in a deal estimated to be worth $800 million.
Then in June 2014, American bought specialty chemicals firm Emerald Performance Materials LLC of Cuyahoga Falls, Ohio, for an undisclosed price. Emerald's products include plasticizers, epoxy resins and carbon black additives.
Arsenal's plastics holdings
In 2012, Arsenal used Royal to buy Clifton Adhesive Inc. of Wayne, N.J. Clifton had supplied thermoplastic and elastomeric adhesives and coatings to the aerospace, military, recreational and commercial marine markets. That deal was one of six plastics-related acquisitions that Arsenal made in 2012.
Arsenal made four more plastics purchases in 2013 and in May 2014 bought related plastics and rubber firms RTH Processing and RDT Manufacturing, both of Delphos, Ohio.
Arsenal reversed course in December when it sold liquid polymer maker Accella Performance Materials to PolyOne Corp. for $49 million. St. Louis-based Accella — formerly known as Dash Multi-Corp Inc. — had annual sales of $35 million.