Houlihan Lokey Advises Minnesota Rubber & Plastics

Houlihan Lokey is pleased to announce that Minnesota Rubber & Plastics (MRP), a portfolio company of KKR, has entered into a definitive agreement to be acquired by Trelleborg Group (OM:TREL B) (Trelleborg) in a transaction valued at $950 million. This transaction closed on October 27, 2022.

MRP is a leader in material compound development and the manufacturing of custom elastomeric and thermoplastic components. For 76 years, the company has built a reputation for consultative design services and successful production of “the tough parts.” With facilities across North America, Europe, and Asia, MRP collaborates with customers to solve difficult sealing and component challenges across multiple markets. Capabilities include materials science and formulation, new product prototyping, operational excellence, and supply chain consolidation. The company’s new Innovation Center provides its customers with direct access to materials science expertise and a fully integrated design-build-prototype-test approach that enhances innovation and greatly accelerates product development. The company places emphasis on research and development and empowers its technicians to design, formulate, develop, and test a wide range of highly engineered materials and parts.

KKR is a leading global investment firm that offers alternative asset management as well as capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit, and real assets and has strategic partners that manage hedge funds.

Trelleborg is a world leader in engineered polymer solutions that seal, damp, and protect critical applications in demanding environments. Its innovative solutions accelerate performance for customers in a sustainable way. Trelleborg has annual sales of about SEK 34 billion and operations in about 50 countries.

The acquisition of MRP complements Trelleborg’s current position and product offering in a number of fast-growing industries, including medical. MRP will gain access to Trelleborg’s global sales channels while also positioning Trelleborg Sealing Solutions to expand its North American presence.

Houlihan Lokey served as the lead financial advisor to MRP and KKR and assisted in initiating, structuring, and negotiating the transaction on the company’s behalf. This deal highlights the firm’s continued success advising specialty manufacturing businesses in fast-growing end markets.