Minnesota Rubber & Plastics (MR&P) is a contract manufacturer that designs, develops and manufactures precision molded plastic and molded rubber components, assemblies and finished product. Products include rubber seals, PEEK molding, silicone overmolding, plus custom components and assemblies. MR&P employs over 1,100 people in nine facilities worldwide. Locations include: Plymouth and Litchfield, MN; Mason City, IA; Watertown, SD; River Falls, WI; Irvine, CA; China, Mexico and Europe. The company is based in Minneapolis (www.mnrubber.com).
“In 1945, MR&P started as a small family-owned company in a suburb of Minneapolis, and through three generations of leadership, it has developed into a world-class, global corporation with a reputation for supplying the finest components and assemblies for the most challenging applications,” said Jim Lande, MR&P CEO. “MR&P has seen very significant growth over the last five years, and the capital investment from NEP will provide us with the resources necessary to help continue our overall growth objectives, including growth in China and within the medical market.”
Norwest Equity Partners is a middle-market private equity firm. The firm makes equity investments of $30 million to $150 million in companies operating in the agriculture, applied technology, business services, consumer products and services, distribution, diversified industrials, and healthcare sectors. The firm manages $5 billion of capital through a series of equity and mezzanine limited partnerships and is currently investing NEP IX with $1.2 billion in capital. Norwest Equity Partners is headquartered in Minneapolis (www.nep.com).
“On behalf of NEP, we are excited to partner with Jim and the MR&P management team. This investment fits nicely with our focus of investing in the diversified industrial sector. MR&P will leverage our operating partner resources through John Hale and Dave Ropp as well as our firm’s experience with industrial investments over the years,” said Andrew Cantwell, NEP Principal and MR&P board member. “MR&P operates within the highly-fragmented global rubber and plastic contract manufacturing industry sector and is well-positioned to benefit from continued positive market dynamics. The company has great momentum.”
At the close of the transaction, John Hale (NEP operating partner) assumed the role of MR&P’s Chairman of the Board.
“MR&P is a terrific company and a great fit for our portfolio. Both of our organizations have deep, Midwest roots, similar operating philosophies, and decades of business experience. MR&P will also benefit from NEP’s experience of building and working with family-owned businesses – we understand the dynamics and importance of solidarity,” said Tim DeVries, NEP Managing General Partner.
Financing for this transaction was provided by BMO Capital Markets, GE Antares Capital, and US Bank.
Houlihan Lokey served as financial advisor to MR&P on the transaction.
© 2012 PEPD • Private Equity’s Leading News Magazine • 9-18-12