Private equity-backed IGM Resins BV, a Dutch manufacturer of products and specialty chemicals to the coatings industry, has acquired a unit of Lamberti SpA for an undisclosed price.

Lamberti agreed to sell its photoinitiator business, which enables companies to facilitate the UV-curing process, which is essential for creating various types of coatings, inks and adhesives that can be used in packaging foods. According to IGM, the acquisition brings an advanced product line to the company that are compliant with the U.S. Food and Drug Administration, as well as "stringent European regulatory requirements."

Included in the transaction are all of the assets, technology, intellectual property and employees dedicated to the research and development of the technoloty, in addition to the commercial activities related to the business.

The unit, based in Milan, Italy, is known for the Esacure product line, which will continue to be sold under the existing brand.

IGM has been owned by Arsenal Capital Partners, a New York private equity firm known for buying specialty industrial companies, since 2012. The firm recently sold sealants business Royal Adhesives and Sealants LLC, a company it bought in 2010 and has consistently grown through add-on acquisitions. Before selling the company in April to American Securities LLC, Arsenal picked up Chemical Innovations Ltd. and Advanced Polymers International, both in 2015.

Arsenal owns other companies in the coatings, adhesives and sealants space, and says the innovation in the industry is what drives the M&A activity. In August, IGM purchased Insight High Technology Group. Arsenal’s other investments include Danlin Industries Corp. and Kel-Tech Inc., both chemical providers to the oil and gas sector, as well as Dash Multi Corp. and Breckenridge Insurance.

Another coatings business, PPG Industries (NYSE: PPG), won Mergers & Acquisitions M&A Mid-Market Strategic Buyer of the Year Award for making several coatings and sealants acquisitions.

For more on the sealants and coatings space, see Innovations in Coatings and Sealants Spark M&A. For more on Royal Adhesives, watch our video interview with Ted Clark (below). 

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