Arsenal Capital Partners Acquires Royal Adhesives & Sealants, LLC

NEW YORK, Dec. 2, 2010 /PRNewswire/ — Arsenal Capital Partners, a leading New
York-based private equity firm that invests in middle-market specialty
industrial, healthcare, and financial services companies, today announced the
acquisition of Royal Adhesives & Sealants, LLC (“Royal”) from Quad-C Management,
Inc.

Royal Adhesives & Sealants, LLC is a leading producer of proprietary,
high-performance adhesives and sealants. Headquartered in South Bend, Indiana,
Royal offers a broad range of specialty formulated products designed to solve
complex bonding, laminating and sealing applications across a diverse range of
markets including aerospace and defense, construction, specialty packaging,
automotive and industrial. The company offers a broad spectrum of customized
thermosetting epoxy and urethane, solvent-based, and water-based technologies to
meet the most demanding adhesive and sealant applications.

John Televantos, a Partner at Arsenal Capital said, “Royal has industry-leading
capabilities that provide proprietary, value-added solutions for its customers.
We are impressed by the accomplishments of the Royal team and we look forward to
working with management to continue the company’s focus on customer service and
to drive growth through innovation. This is an exciting sector and we plan new
investments in the business and further acquisitions to accelerate global growth
and expand the platform into new technologies and geographies.”

Ted Clark, Chief Executive Officer of Royal, said, “We are delighted to partner
with Arsenal Capital. Arsenal has a successful track record of building similar
companies in the middle-market specialty industrials sector and their experience
will better enable us to take our company to the next level of growth and
innovation.”

Timothy Zappala, a Partner at Arsenal Capital, added, “Royal has a long history
of innovation and a demonstrated ability to achieve steady organic growth.
Additionally, the management team has successfully targeted specialty
acquisitions that complement its business lines and broaden the industries it
serves. Management has successfully integrated these new businesses and built a
cohesive company that provides a wide range of technologies and we hope to build
upon their market leading position.”

Arsenal’s current investments in the specialty industrials sector include
Velsicol Chemical, a manufacturer of high performance chemicals used in
agriculture and industrial applications, and Novolyte Technologies, a
manufacturer of specialty electrolyte materials for lithium ion battery and
energy storage applications and a variety of other technically demanding custom
manufactured products for the electronics, pharmaceutical and industrial
markets. Earlier this year, Arsenal sold Genovique Specialties Corporation to
Eastman Chemical Corporation and IDQ to Castle Harlan, in transactions which
returned in excess of 12.0x and 8.0x invested capital to investors,
respectively.

About Arsenal Capital Partners

Arsenal Capital Partners is a leading New York-based private equity firm that
invests in middle-market specialty industrial, healthcare and financial services
companies. Arsenal makes investments in sectors where the firm has prior
knowledge and experience, and targets businesses that have the potential for
further value creation by working closely with management to accelerate growth
and leverage the firm’s operational improvement capabilities. Arsenal currently
has $800 million of committed equity capital. For additional information on
Arsenal Capital Partners, please visit www.arsenalcapital.com.

Contact: Chris Tofalli
Chris Tofalli Public Relations, LLC
914-834-4334

SOURCE Arsenal Capital Partners