Royal Holdings Inc. has acquired Chemical Innovations Ltd. from Vita Group Unlimited, expanding the adhesives company's presence in Europe.
Chemical Innovations, headquartered in Preston, U.K., develops and manufactures high-performance rubber-to-metal, rubber-to-plastic, rubber-to-fabric and rubber-to-glass bonding adhesives. The products are used for anti-vibration, hoses, belting and friction products in the automotive and industrial industries.
Royal Holdings, which runs Royal Adhesives & Sealants LLC, is making the acquisition through its Kommerling UK Ltd. subsidiary, which does business in the U.K. Royal Adhesives has made a slew of acquisitions under private equity firm Arsenal Capital Partners' ownership. In January, the group bought Advanced Polymers International, and in September, picked up Chemque.
The buyer is backed by Arsenal Capital Partners, a New York-based private equity firm. Arsenal backs several adhesives, sealants and coatings companies, including Accella Performance Material Inc., which acquired IPS Polymer Systems Inc. in March. In August, Arsenal portfolio company IGM Resins Inc. bought Insight High Technology Group.
Aside from Arsenal's businesses, we've seen other players scoop up assets in the fragmented coatings, adhesives and sealants space. One of those acquirers, PPG Industries (NYSE: PPG) was named Mergers & Acquisitions M&A Mid-Market Strategic Buyer of the Year for 2014, after picking up four middle-market businesses and expanding in Mexico.