Arsenal Capital network grow with two additions

NEW YORK—Two key operations within the Arsenal Capital Partners network of companies are accelerating their growth and expanding their portfolios via acquisitions.

Accella Performance Materials Inc. has purchased Zeus Tyrefill Systems GmbH from Roesler Tyre Innovators GmbH to give it a significant global presence.

In the second transaction, South Bend, Ind.-headquartered Royal Adhesives & Sealants L.L.C. said subsidiary Royal Adhesives & Sealants Canada Ltd. plans to acquire virtually all the assets of Chemque, a major producer of polyurethane foams and adhesives based in Toronto.

Accella and Royal are part of the Arsenal Capital group, which through its various businesses made numerous acquisitions in 2013 and several thus far this year. Financial terms of the two latest transactions, which were announced on Sept. 2, were not released.

Accella a St. Louis, Mo.-headquartered manufacturer of custom polyurethane, specialty vinyl plastisols and recycled rubber products, bought Zeus because it enhances the firm's global tire fill offerings and creates new growth opportunities, company officials said.

Zeus is a leading manufacturer of tire fill systems and flatproofing products for heavy duty industrial and off-the-road vehicles in Europe, South Africa and Australia. Based in Dortmund, Germany, the company has extensive polyurethane manufacturing capabilities, a spokesman said.

The acquisition “represents a key next step in the strategic growth of our global polyurethane systems business, and especially with our focus on providing our customers in the tire fill segments the greatest value through the best technology, service and convenient global locations,” Accella CEO Andy Harris said.

It will become a subsidiary of Accella Polyurethane Systems and will continue to operate out of its Dortmund plant. Martin Roesler, former owner of Zeus, will remain with the business as managing director.

Originally called Dash Multi-Corp., Accella was acquired by Arsenal Capital in December 2012. It has been growing since.

With the purchase of Zeus, its tire fill business—which now consists of subsidiaries Arnco, Pathway Performance Polymers and Zeus—and the firm's polyurethanes platform will be strengthened, according to John Televantos, a partner at New York-headquartered Arsenal Capital.

Accella's revenues have increased to $300 million in the last two years, he said, and “we are committed to the support and growth of Accella and will continue to invest in strategic opportunities that will further transform the business.”

Roesler Tyre Innovators has owned and operated Zeus since 1983. Zeus has a long history of proven products, innovation and a positive reputation that fit well within Accella's culture, said Roy Seroussi, a principal at Arsenal Capital.

Accella, which changed its name from Dash Multi-Corp. May 7, has made numerous acquisitions since it came under Arsenal's umbrella almost four years ago. Earlier this year, it purchased RDT Manufacturing L.L.C. and RTH Processing Inc., two related businesses in Delphos, Ohio.

RDT makes rolled rubber products, including athletic and commercial flooring, acoustical underlayment and load containment mating.

RTH produces colored EPDM granules used in playground surfacing, running tracks and other rubber goods.

Royal is acquiring Chemque to expand its growing platform of adhesive, sealant and coating products.

It's the company's seventh acquisition since 2010, not long after it was purchased by Arsenal Capital.

Chemque will continue to operate out of its Toronto plant and its management team and work force of about 70 will stay with the business, the spokesman said.

It has been in business for 41 years and primarily serves the telecom, flooring and construction markets. The time is right for the company to become part of a larger organization “with the same operating philosophy and where we have a great market fit,” Chemque CEO Alex Botrie said.

The addition of Chemque will broaden Royal's capability for polyurethane adhesives, potting compounds and foams, said Royal CEO Ted Clark.

“We continue to identify leading niche companies that will enhance our product offerings to the markets in which we have chosen to compete,” he said.

Merging Chemque with Royal represents another opportunity to build a leading adhesives, sealants and coatings business featuring customized and proprietary products, according to Tim Zappala, a partner at Arsenal Capital. Chemque provides specialized packaging for the construction, utility and assembly markets.

Royal is being built “by selectively identifying niche acquisitions in this specialty sub sector where we can apply our deep industry knowledge to achieve enhanced growth,” Televantos said.