Private equity firm Arsenal Capital Partners is buying Adco Global Inc., a manufacturer of specialty adhesives, sealants and tapes.
Terms of the deal are undisclosed, but Arsenal generally focuses on deals between $50 million and $250 million in enterprise value. The transaction is expected to close during the third quarter of 2013.
Adco Global is a portfolio company of Aurora Capital Group, a Los Angeles-based private equity firm. Aurora tapped investment bank Jefferies LLC to run an auction, which began in March.
Headquartered in Lincolnshire, Ill., Adco supplies a variety of goods to the construction and transportation industries, including specialty adhesives, sealants, tapes and industrial coatings used for insulation and other purposes.
Arsenal is no stranger to this particular segment, says Arsenal partner John Televantos.
"We have looked at this space for several years and have expertise in the space," he tells Mergers & Acquisitions.
The New York-based firm already owns Royal Adhesives & Sealants LLC, which it acquired from Quad-C Management Inc. in November 2010, as well as IGM Resins, an adhesives and coatings provider headquartered in the Netherlands, which it purchased in September 2012. Terms for each deal were not disclosed. (For our interview with Royal Adhesives CEO Ted Clark, watch the video "Buy & Build: CEO's Perspective.")
Adco products are applied to many sectors, especially the manufacturing of insulating glass windows, solar panels, cars, telecommunications and construction.
The deal comes about a month after Arsenal closed its latest fund, Arsenal Capital Fund III, after raising roughly $875 million. In May, the firm bought two polyurethane providers, Arnco and Pathway Polymers. Both companies were added to portfolio company Dash Multi-Corp., which Arsenal picked up in December 2012.