KKR has closed its sale of Quadion (DBA Minnesota Rubber and Plastics), a provider of elastomer and thermoplastic products, to Trelleborg Group for $950 million.
Minnesota Rubber and Plastics (MRP) is a contract manufacturer of elastomer and thermoplastic products that are used in medical, water and beverage dispensing, industrial and automotive sealing, and other end markets. The company’s capabilities include design, development, and manufacturing of custom products used in harsh environments and technically demanding applications.
MRP has a specialization in micro-molding and produces its own brand of O-rings and sealing products under the Quad-Ring brand name. MRP, led by CEO Jay Ward, had annual revenues of $220 million in 2021 and is headquartered in Minneapolis with additional facilities in Minnesota, Iowa, Wisconsin, New York, Mexico, the UK, China, the Czech Republic, and France.
KKR acquired MRP from Norwest Equity Partners in October 2018. During KKR’s ownership of MRP, the company closed two add-on acquisitions including the March 2022 buy of Primasil Silicones, a UK-based custom silicone rubber compounder, mixer and manufacturer specializing in the medical, HVAC and specialty industrial end markets; and the June 2021 buy of Pawling Engineered Products, a Pawling, New York-based maker of custom elastomeric inflatable seals and other extruded products.
According to KKR, all of MRP’s more than 1,400 employees are receiving cash payouts through an employee ownership plan implemented by KKR when it acquired the business in 2018. Payments vary based on tenure and employment status, with employees who joined MRP in late 2018 and 2019 receiving payouts on average equivalent to over 12 months of annual income and longer-tenured employees receiving up to twice as much.
“I am incredibly proud of the entire MRP team’s accomplishments throughout our time together,” said Josh Weisenbeck, a partner at KKR who leads the firm’s industrials private equity team. “With Trelleborg, MRP will continue to have an employee-centric culture, and we are looking forward to seeing their many successes to come.”
Trelleborg is a manufacturer of engineered polymer products that are used to seal, damp and protect critical products operating in demanding environments. Publicly traded Trelleborg, with annual revenues of more than $3 billion, was founded in 1905 and is headquartered near Copenhagen in Trelleborg, Sweden.
According to Peter Nilsson, the CEO of Trelleborg, the valuation multiple for MRP, including future synergies, is estimated at 10x EBITDA.
KKR (NYSE: KKR) makes private equity, fixed income, and other investments in companies in North America, Europe, Asia, and the Middle East. KKR was founded in 1976 and in addition to its New York headquarters has offices in 19 cities around the world.
Houlihan Lokey was the financial advisor to KKR and MRP on this transaction and Kirkland & Ellis provided legal services.
© 2022 Private Equity Professional | November 1, 2022
