The coatings and sealants markets have been consolidating for years, but innovation in the space guarantees that more deals are to come, says John Televantos, a partner at New York private equity firm Arsenal Capital Partners.

Arsenal has backed numerous coatings and sealants companies, including Accella Performance Materials, which bought IPS Polymer Systems in March. Arsenal has backed Royal Adhesives and Sealants since 2010, and announced a plan to sell the business to PE firm American Securities LLC on April 27. "The profile of the company in terms of profit margin, profit level (Ebitda) and growth rate is very attractive in today's markets," Televantos says. 

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