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Private Equity Firms Agree to Buy Industrial Rubber Products
August 20, 2008
Industrial Rubber Products, Inc., Hibbing, MN, has agreed to be acquired by affiliates of Lime Rock Partners, a Westport, CT-based private equity firm focusing on the global energy industry, and Thompson Street Capital Partners, a St. Louis-based private equity firm focused on the manufacturing, distribution and services industries.
Industrial Rubber Products will be acquired for $16.50 per share in cash, representing a 49% premium to the average closing price of Industrial Rubber over the past 20 trading days. The plan still must be approved by shareholders.
Management of the company will continue in their current officer positions and retain a meaningful portion of their ownership.
Daniel Burkes, CEO of Industrial Rubber Products, said: 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."
Industrial Rubber Products sells protective products and coating for applications to steel pipe and other industrial equipment in the energy, mining, aggregates, and other end markets.