Feb 6 (Reuters) - Quinpario, a blank-check acquisition company run by former Solutia Inc chief executive Jeffry Quinn, is in advanced talks to buy specialty tape maker Royal Adhesives & Sealants LLC for around $1 billion, according to people familiar with the matter.
The acquisition vehicle, dubbed Quinpario Acquisition Corp 2 , has so far outbid private equity firms, including American Securities LLC, in the auction for Royal Adhesives, the people said on Friday.
Quinpario, which needs to raise debt financing for the deal, has yet to finalize negotiations, the people cautioned. Arsenal Capital Partners, the buyout firm that owns Royal Adhesives, may still decide to sell the company to American Securities or another bidder, the people added.
The sources asked not to be identified because the negotiations are confidential. Quinpario, Arsenal Capital Partners and American Securities declined to comment, while Royal Adhesives did not respond to a request for comment. (Reporting by Greg Roumeliotis and Mike Stone in New York; Editing by Chizu Nomiyama)