Industrial Rubber Products sold to private equity companies
ERJ staff report (RD)
Hibbing, Minnesota - Protective coatings specialist Industrial Rubber Products has entered into a definitive agreement with affiliates of private equity firm Lime Rock Partners and private equity firm Thompson Street Capital Partners, the company announced 18 August. President, Daniel Burkes and the management of the company are expected to continue in their current roles and retain a “meaningful portion of their ownership,†the company said.
On its website, IRP claims to be a "leading designer, producer and applicator of elastomeric protective coatings to pipelines and other equipment used in demanding industrial applications."Â The Company serves US and international customers in the energy, mining, aggregates, and other end-markets. More recently, it has focused its product development efforts on customizing product solutions for other end-markets, such as the oil sands, off-shore drilling, coal slurry, ethanol, and nuclear wastewater markets.
Westport, Connecticut-based, Lime Rock Partners is focused mainly on the global energy industry whilst St. Louis-based, Thompson Street Capital focuses on the manufacturing, distribution, and service industries.
The company said the merger provides for the acquisition of Industrial Rubber Products for $16.50 (Euro 11.20) per share in cash, which may be reduced for customary transaction expenses incurred by the company, adding that the acquisition price represents an approximate 49 percent premium to the average closing price of the company over the preceding twenty days of trading. The board of directors advised shareholders to vote in favour of the merger following its unanimous approval of the deal.
“The board and I fully agree that the transaction with Lime Rock and Thompson Street offers the best of both worlds: a fair price for our existing shareholders and two new partners that will help Industrial Rubber Products grow. We are singularly focused on delivering unique, customised, superior solutions to our customers,†concluded Burkes.
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Press release from Industrial Rubber Products
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