Royal Adhesives & Sealants LLC (Royal) a portfolio company of Arsenal Capital Partners (Arsenal) announced that its subsidiary Royal Adhesives & Sealants Canada LTD will acquire substantially all of the assets of Chemque.
Chemque, based in Toronto Canada, is a major supplier of polyurethane foams and adhesives to the telecom, flooring and construction markets. This acquisition builds on Royal’s strong platform of leading adhesive, sealant and coating solutions.
“We continue to identify leading niche companies that will enhance our product offerings to the markets in which we have chosen to compete. The addition of Chemque will broaden our technical capability for polyurethane adhesives, potting compounds and foams” said Ted Clark, Chief Executive Officer of Royal. “Chemque’s polyurethane adhesives and foams will add to our growing portfolio of leading adhesives and sealants technologies and we look forward to working with the Chemque team to successfully integrate the Chemque business into Royal.”
Tim Zappala, a Partner at Arsenal Capital said, “Chemque has a long history supplying adhesives to the demanding telecom, flooring and construction markets. The acquisition of Chemque and merger with Royal represents another important milestone in our strategy to further build a leading adhesives, sealants and coatings business offering customized and proprietary solutions.”
Chemque Chief Executive Officer Alex Botrie stated, “Chemque’s success and growth over the past 41 years was the direct result of offering advanced technology, exemplary service, and customized products and application solutions. The time is now right for Chemque to be part of a larger organization with the same operating philosophy and where we have a great market fit. The company is now better positioned to continue offering the customer support and service going forward that our customers demand.”
John Televantos, a Partner at Arsenal Capital, said, “We are building Royal in part by selectively identifying niche acquisitions in this specialty sub sector where we can apply our deep industry knowledge to achieve enhanced growth. We built a global top ten adhesives and sealant company that is becoming a leading competitor on a global scale.”
Since its acquisition by Arsenal, Royal has grown organically and via acquisition. This is the company’s seventh add-on acquisition since 2010.