SOUTH BEND, Ind.—Royal Holdings Inc. has acquired what it considers a key business to expand its growing group of adhesives, sealants and coatings operations.
The company, through its Royal Packaging Specialties subsidiary, purchased the stock of Peabody, Mass.-based Adhesives Packaging Specialties Inc., which will operate as a stand-alone business, according to Royal Holdings CEO Ted Clark.
APS custom packages one- and two-component adhesives, sealants and resins, including acrylic, polyurethane, anaerobic materials, conductive epoxy, polysulfide, premixed frozen syringes, UV curable and other polymers.
The company's products are used in a wide variety of industries such as aerospace, automotive, electronics, telecommunications, computers and construction.
Its most common adhesive packaging types are dual cartridges, single component, burst bags and syringes.
South Bend-based Royal Holdings, formed in 2003 as a holding company of New York-headquartered Arsenal Capital Partners, has been investing in niche segments of the global adhesives, sealants and coatings industry since it was founded.
In addition to Royal Specialty Packaging, the new parent of APS, its holdings include Royal Adhesives & Sealants, Royal Coatings & Specialty Polymers, and Royal Elastomers.
Name remains the same
APS, which offers a wide range of adhesive packaging, will retain its present name, Clark said. It also will keep its management team headed by President Stephen Buchanan, the firm's work force of about 60 and its 40,000-sq.-ft. plant in Peabody.
“It'll operate independently and we plan to expand it over time,” Clark said. Purchase terms weren't disclosed.
“This is a business we can buy and build,” he said.
“And I like to buy and build. We plan on developing a business around it rather than integrate it. This is an area I've wanted to invest in for a long time.”
Clark said the operation was family-owned and had no real interest in expanding. “It's the kind of business where you have to be close to your customers,” he said. “I think we have a good opportunity to grow. We can build a fairly good sized business with APS.”
He said the company, launched by adhesives industry veteran Melvin Lawson in 1977, will help Royal Holdings build a larger operation that focuses on improving “our domestic and international customers' process for packaging, mixing and applying adhesives and sealants.”
Two Arsenal Capital partners who co-head the firm's Specialty Industrial operation—John Televantos and Tim Zappala—agreed.
Televantos said the acquired business fits with the company's strategy and gives it a strong platform to develop a larger and more geographically diverse custom packaging business.
APS has an industry-leading reputation for quality and service, Zappala said, “which is critical to support the trend toward more efficient packaging, mixing and application of structural and assembly adhesives and sealants.”