rubber

Blue Point Capital Partners Exits Quality Synthetic Rubber

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Blue Point Capital Partners announced today that the firm has sold its interest in Quality Synthetic Rubber to Lexington Precision Corporation, a portfolio company of Industrial Growth Partners. “Blue Point was a true partner and provided very impactful operational and strategic support to the business. During our ownership by Blue Point, we have succeeded in building a global, market-leading electrical and medical components business serving diversified end markets. We have a fantastic team in place and a platform equipped for the next phase of growth,” said Randy Ross, chief executive officer of Quality Synthetic Rubber.

Quality Synthetic Rubber (“QSR”) is a manufacturer of highly engineered, molded silicone components serving the medical, automotive, heavy transportation and industrial markets. The company’s primary product line includes precision silicone seals that are integrated into automotive and industrial electrical connector assemblies and high precision silicone medical components such as vessel loops, IV components, catheters, and surgical and sterilization modules. The company was founded in 1966 and is based in Twinsburg, OH (www.qsr-inc.com).

Under the ownership of Blue Point, QSR’s revenue and EBITDA increased by more than 50 percent, China revenues grew four-fold, medical revenues increased five-fold and together the China and medical divisions now represent a large and rapidly growing portion of the overall business.

“We are extremely pleased with what we’ve been able to accomplish alongside the management team at QSR, driving significant growth and diversification while navigating an unprecedented downturn in 2009. We adopted a very clear value-creation plan at acquisition focused on diversifying the business beyond U.S. automotive via expansion of the medical segment and by benefiting from the rapid growth in the China market,” said John LeMay, a partner with Blue Point. “Execution of the strategy was driven by QSR’s exceptional management team together with Blue Point operating and China resources put in place to support the strategy.”

Blue Point Capital Partners is a lower-middle-market private equity firm specializing in recapitalizations, corporate divestitures and buyouts. Blue Point invests in manufacturing, distribution and service businesses generating $20 million to $200 million in revenue. The firm has offices in Charlotte, NC; Cleveland, OH; Seattle, WA and Shanghai, China (www.bluepointcapital.com).

Industrial Growth Partners provides equity capital to lower-middle market manufacturing and manufacturing services companies with revenues of $30 million to $100 million. The firm invests equity in a range of transactions involving a change of ownership, such as management buyouts, leveraged buyouts, corporate divestitures, recapitalizations and management buy-ins. The firm is based in San Francisco, CA (www.igpequity.com).

Windjammer Capital Acquires Shercon

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It was announced today that Protective Industries, a portfolio company of Windjammer Capital Investors, has acquired Shercon, a provider of standard and custom die cuts and molded rubber masking solutions. The transaction closed on April 30, 2012.

Shercon is a provider of standard and custom die cuts and molded rubber masking solutions, including caps, plugs, tapes, die cut maskings and complex rubber maskings, used to protect selected surfaces during industrial finishing processes. The company is headquartered in Cypress, CA with wholly owned manufacturing operations in Hangzhou, China and a distribution center in Louisville, KT (www.shercon.com).

Protective Industries (dba Caplugs) manufactures caps, plugs, tubing, containers, edge liners, fasteners, netting and masking products that are used in the manufacturing, transportation and storage industries. The company specializes in injection molding, vinyl-dip molding and plastic extrusion, producing approximately 2 billion pieces per year. The company has four manufacturing and distribution facilities located on the East and West coasts of the United States and in China. Protective Industries was founded in 1948 and is based in Buffalo, NY (www.caplugs.com).

Intrepid Investment Bankers acted as the exclusive M&A advisor to Shercon in connection with the transaction. The Intrepid team included Jim Freedman, Jeremiah Mann, Brian Levin and Zachary Browning. Intrepid is a mergers and acquisitions and corporate finance advisory firm focused on the middle-market. Intrepid was founded in 2010 by the former principals of Barrington Associates, a firm that grew to become a national middle market M&A advisor before its acquisition by Wells Fargo in 2006. The firm is based in Los Angeles, CA (www.intrepidib.com).

“This is an exciting next step in Shercon’s future and we are delighted to partner with Caplugs and Windjammer,” said Keith Ennis, CEO of Shercon. “Intrepid’s diligence in understanding the business and excellent control of the process made the sale efficient and helped us meet all of our objectives and goals.”

Windjammer Capital Investors makes control and non-control investments in middle market businesses in partnership with management. Windjammer manages institutional funds totaling over $1.8 billion of capital and is currently investing its latest fund, Windjammer Senior Equity Fund IV, which it raised in 2012. The firm was founded in 1990 and is based in Newport Beach, CA and Waltham, MA (www.windjammercapital.com).