Royal Adhesives & Sealants LLC Acquires Basic Adhesives Inc.’s Industrial Adhesive Product Line

Royal Adhesives & Sealants LLC announced today the completion of its acquisition of the assets of Basic Adhesives Inc.’s Industrial water based adhesives product line. The acquired product line consists of urethane, acrylic latex, natural rubber, SBR and Neoprene water based adhesives primarily sold to the flexible packaging market. Royal will be transferring production of these products to its new 25,000 sq. ft., state of the art water based adhesives manufacturing center located within its 240,000 sq. ft. South Bend Indiana operation. Basic Adhesives Inc. will continue to manufacture the products until the transition is complete.

Ted Clark, Chief Executive Officer of Royal, commented: "This is our fourth acquisition in the last eighteen months, following the acquisitions of ESC Adhesives in December of 2004, Hardman Adhesives in June of 2005 and J&R industries in December of 2005. All four acquisitions fit our strategy to acquire adhesives and sealants businesses focused on industrial market applications requiring added value adhesives and sealants. These acquisitions have resulted in our now having a very balanced portfolio of water based, reactive and solvent based adhesives and sealant products and technologies to offer our customers."

"The sale of our Industrial adhesives product line to Royal positions it for future growth alongside Royal’s other industrial adhesive products and allows Basic to focus on its Leather products and the fast growing Dritac flooring adhesives business." stated Yale Block, president of Basic Adhesives Inc.

Steven Zens, Vice President of Sales and Marketing of Royal, also commented: "The addition of the water based adhesive product line broadens our product and technology offering to further penetrate our existing markets, and adds the fast growing flexible packaging market to the list of niche industrial markets we serve."

High performance adhesives, sealants, encapsulants, potting compounds, and mirror mastics make up the Royal Adhesives & Sealants product mix. These high performance products are used in a variety of markets including aerospace and defense, assembly, automotive and recreational vehicle, electrical/electronic, filter, marine, and general industrial. The company also offers a broad spectrum of thermosetting epoxy and urethane, solvent-based, and water-based technologies to meet the most demanding adhesive and sealant applications.

About Royal Adhesives & Sealants LLC
Royal Adhesives & Sealants is a manufacturer and marketer of industrial adhesives and sealants, commercial roofing adhesives and mirror mastics. Royal manufactures both solvent-based and water-based adhesives and sealants in a variety of packages including totes, drums, pails, cartridges and foil wrapped sausages.

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