Target Information

APPLIED Adhesives, a company specializing in adhesive products, has been acquired by Bertram Capital from Arsenal Capital Partners. The firm offers an extensive range of adhesive solutions across various markets, including packaging and paper conversion. With established brands such as ASURE, Adhezion, InfinityBond, Pacific Adhesives, AST Equipment, and KEYSTONE, APPLIED has positioned itself as a significant player in the industry.

Since being acquired by Arsenal Capital Partners in 2021, APPLIED Adhesives has witnessed significant growth, expanding its presence through 17 strategic acquisitions over the past four years. This growth has allowed APPLIED to enter new territories, enhance its technical capabilities, and invest in digital and e-commerce solutions to further its market reach.

Industry Overview

The adhesive industry is experiencing robust growth, driven by the rising demand for adhesive solutions in various applications including packaging, construction, and automotive sectors. In the United States, the adhesive market is projected to grow due to advancements in technology, increasing environmental regulations, and a shift toward sustainable adhesives.

Furthermore, the packaging sector is expanding rapidly, with a focus on sustainable materials, pushing manufacturers to adopt innovative adhesive solutions. APPLIED Adhesives, with its strategic focus on product assembly and automotive applications, is well positioned to capture growth within these thriving sectors.

The ongoing trend of e-commerce has also prompted manufacturers to invest heavily in packaging and logistics, which in turn boosts the demand for efficient adhesion solutions. As players in the adhesive market enhance their product lines to meet these demands, APPLIED Adhesives’ investment in digital marketing and e-commerce capabilities puts it at a competitive advantage.

Overall, the adhesive industry is poised for continued expansion, providing ample opportunities for APPLIED Adhesives to further solidify its market position and innovate its product offerings.

Rationale Behind the Deal

The sale of APPLIED Adhesives to Bertram Capital aligns with the broader strategic vision of both companies. For Arsenal Capital Partners, the transaction reflects the successful performance and significant value creation achieved during its tenure with APPLIED. Under Arsenal's guidance, APPLIED trended towards becoming a leading innovator within the adhesive and distribution market.

Bertram Capital’s acquisition marks a crucial transition for APPLIED, positioning the company for accelerated growth in its next phase. The partnership with Bertram is expected to leverage their expertise and resources to further enhance APPLIED’s operations and market reach.

Information about the Investor

Bertram Capital is a prominent private equity firm focused on building lasting value in portfolio companies through strategic investments and hands-on operational support. With an extensive history of investing in various sectors, Bertram Capital employs a differentiated approach that emphasizes growth through rigorous operational improvements.

The firm has a proven track record with previous investments across several industries, making it well-equipped to support APPLIED Adhesives in its new phase of growth. Their commitment to fostering innovation and operational excellence is expected to align well with APPLIED’s vision for the future.

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This acquisition appears to be a strategic move that could yield positive results for both APPLIED Adhesives and Bertram Capital. The investment taps into the ongoing growth trends within the adhesive sector, providing APPLIED with the resources needed to expand its product lines and market reach significantly.

The previous successful relationship with Arsenal Capital Partners highlights APPLIED’s strong foundational capabilities and market positioning. As the company transitions to Bertram Capital, the continuity of strategic support and operational guidance will be essential.

Moreover, Bertram’s expertise in driving growth within acquired companies suggests that APPLIED could leverage new operational strategies and funding to enhance its innovation and competitive edge further. Given the current growth trajectory of the adhesive market, this acquisition could be a well-timed and advantageous decision.

Overall, if managed effectively, this partnership has the potential to unlock additional value and solidify APPLIED Adhesives’ dominant position in the adhesive industry.

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