Arsenal Capital Partners, a New York-based private equity firm, today announced the acquisition of Para-Chem Southern ("Para-Chem") on Dec. 13. As part of the transaction, Para-Chem will be merged with Royal Adhesives and Sealants LLC, which Arsenal previously acquired Nov. 29.

Headquartered in Simpsonville, S.C., Para-Chem offers specialty adhesives, coatings, polymers, surfactants and thickeners across a range of markets in North America including carpeting, personal care, household, institutional and industrial, graphic arts, construction, specialty textiles, paper, packaging, and military.

John Televantos, a partner at Arsenal Capital, said, "The acquisition of Para-Chem and merger with Royal represents an important milestone in our strategy to further build a leading adhesives, sealants and coatings business offering customized and proprietary solutions."

Tim Zappala, also a Partner at Arsenal, added, "We look forward to partnering with the management and employees of both companies to expand the platform through organic growth initiatives, global expansion and further acquisitions."

Ted Clark, Royal's ceo, noted, "The acquisition of Para-Chem strengthens Royal's technical expertise and approach of providing customers with specialty formulated products. Royal's experienced management team will partner with Para-Chem to accelerate global growth and expand the platform into new technologies and geographies."

Bill Ward, Para-Chem's coo, and now president of Royal, added, "We are delighted to become an integral part of Royal Adhesives and Sealants. Para-Chem's technical capabilities will enhance Royal's customized product offerings and together, we believe this positions the newly combined company to better address customer demands for flexible, high performance and quality products."

Arsenal executives John Televantos, Tim Zappala, and Sal Guccione will serve on the Board of Directors of Royal.

Equity financing for the transaction was provided from Arsenal Capital Partners' $500 million Fund II. Debt financing was provided by Madison Capital Funding LLC, LBC Credit Partners Inc., and Prospect Capital Corp. Brookwood Associates was the exclusive financial advisor to Para-Chem. Proskauer Rose LLP was legal advisor to Arsenal Capital.

For more information on Royal Adhesives and Sealants, visitwww.royaladhesives.com.