River Associates has acquired Humphrey’s Industrial Products (DBA The Rubber Group), a manufacturer and distributor of compression and injected molded rubber products.
The Rubber Group’s products include grommets, bellows, bumpers, seals, and hoses that are typically used in high-cost of failure applications in the medical, oil and gas, general industrial, and transportation sectors. The company also provides molded custom rubber products such as rollers and drive wheels, rubber profiles, tubing, and cord; and standard mechanical products such as isolation mounts, bumpers, appliance feet, and O-rings.
“River Associates has extensive experience helping companies like ours develop a growth strategy, and their style and approach gave me confidence we’d be able to maintain the incredible culture that we’ve built over the last 36 years. Finding the right partner was important to me,” said Mr. Pruyn. “A transaction like this is a lot of work, but River was great to work with throughout the diligence process. This is an exciting inflection point for The Rubber Group, and we are excited to see what the future holds.”
“The Rubber Group is exactly the type of business River has been investing in for over 33 years,” said Stuart Vyule, a principal at River Associates. “Their products are highly engineered and mission critical for demanding customer applications. The company has built an outstanding reputation in the industry for its knowledge of elastomer processing, high-quality products, and superior customer service. Their customer relationships span decades, and we are confident with the right people and focus we will be able to realize significant growth in the coming years. Rob and his team are going to be excellent partners, and we are looking forward to what we will be able to accomplish together.”
Chattanooga, Tennessee-based River Associates invests in United States and Canadian-based companies that have revenues of $20 million to $100 million and EBITDA of $3 million to $15 million. Sectors of interest include niche manufacturing, high-margin distribution, industrial services, and business services.
Financing for this transaction was provided by Bell Capital, a division of Bell Bank. Minneapolis-based Bell Capital, led by managing directors Mike Mahoney and Seth Hove, provides senior cash flow loans to support acquisitions by private equity firms of companies located nationwide that have revenues from $10 million to $100 million and EBITDA from $3 million to $10 million.
River Associates is actively seeking add-on acquisitions of companies that manufacture similar or complementary products to The Rubber Group.
© 2022 Private Equity Professional | September 13, 2022
