GRT Rubber Technologies Announces Strategic Acquisition of Valley Rubber

Rhea-AI Summary

GRT Rubber Technologies has announced its strategic acquisition of Valley Rubber, enhancing its position in the manufacturing of engineered rubber products for mining and industrial applications. The partnership aims to leverage complementary product offerings, enabling expansion into international markets such as Chile, Mexico, and Peru. This collaboration is supported by Main Street Capital, GRT's long-standing financial partner since 2014, facilitating solid growth. The acquisition is set to improve market share and provide access to new customers while addressing operational challenges in the agriculture sector.

Positive

• Strategic acquisition of Valley Rubber expands GRT's product offerings and market presence.
• Access to international markets in Chile, Mexico, and Peru enhances growth potential.
• Complementary product lines improve overall service and customer solutions.

Negative

• None.

PARAGOULD, Ark., Nov. 18, 2021 /PRNewswire/ -- GRT Rubber Technologies (GRT), a leading manufacturer of engineered rubber products for applications across a diversified array of end-markets, today announced a strategic acquisition of Valley Rubber, a manufacturer of custom rubber solutions for tough mining and industrial applications. The two industry-leading manufacturers will join forces to share resources, end-market expertise and expand their geographic footprints.

Combination to enable international growth and increased market share
GRT and Valley Rubber have significant overlap in complementary product offerings and channels in relation to conveyer belt systems. GRT manufactures an extensive line of conveyer belt products and primarily sells through distributors across a diversified array of end-markets, with a core focus on aggregate (sand, gravel, cement, etc.). Valley Rubber provides auxiliary components that control transfer points and dust suppression, addressing issues of end users and selling directly into the aggregate and mining markets.

"Our team is thrilled to be partnering with a fellow Southern rubber manufacturing company," said David Brown, CEO of GRT. "Valley Rubber is respected in the industry, and their well-defined culture and operational excellence aligns with our values. Valley's expertise in the aggregate and mining industries will provide us with more access and material exposure to our current and new markets."

The partnership will also allow GRT to significantly expand its international footprint. Valley Rubber has a growing presence in Chile, Mexico and Peru with a focus on the mineral producing markets that GRT will support and grow.

"We could not ask for a better partner than GRT, and our team is excited about the synergies that will be created by combining complementary products and solutions," said Cronan Connell, CEO of Valley Rubber. "GRT's involvement in markets like agriculture, where transfer points and dust suppression are crucial, will provide new exposure for our company. Together, we will be stronger to the benefit of our employees, customers, and business partners."

GRT's longstanding capital partner funds deal
Main Street Capital Corporation (NYSE: MAIN), a publicly traded business development corporation who has been a partner and capital provider of GRT's since 2014, helped facilitate the deal. Following a corporate carve-out transaction in 2014, GRT has experienced tremendous growth, culminating in this Valley Rubber partnership.

"During the time with our previous parent company, GRT became less of a strategic fit within the larger vision," said Brown. "Having a steady and willing provider of capital with a long-term, patient approach to investing like Main Street opened the door to many possibilities for our company, which has allowed us to expand our product offerings and add services that we did not previously have."

"GRT has been a tremendous investment and portfolio company for us over the past seven years," said Colton Braud, Managing Director at Main Street. "Add-on acquisitions rarely occur this far from the initial investment date for private equity-backed companies, but our continued financial support of GRT is a testament to the strength of our partnership with management, our belief in the value creation opportunities presented by the strategic acquisition of Valley, as well as Main Street's long-term investment horizon and permanent capital base."

To learn more about GRT and Valley Rubber's product solution offerings, visit https://www.grtrubber.com and https://www.valleyrubber.solutions/.

GRT Rubber Technologies
GRT Rubber Technologies (GRT) (https://www.grtrubber.com)  is a leading manufacturer of engineered rubber products, including conveyor belts and sheet rubber products, for many applications across a diversified array of end-markets. Over its 100+ year history, the Company has developed strong brands and a reputation for high quality, reliable products, and differentiated customer service. GRT's product line is manufactured in a 142,000 square foot facility in Paragould, Arkansas.

Valley Rubber
Valley Rubber (https://www.valleyrubber.solutions/) is a leading manufacturer of custom rubber solutions for tough mining, infrastructure and industrial applications. As a solutions-based company, they excel in helping their customers improve safety, meet regulatory requirements and reduce maintenance costs. Valley Rubber was founded in 1967 and has locations in Falkville, Alabama, Minden, Nevada and Antofagasta, Chile.

About Main Street Capital Corporation
Main Street (www.mainstcapital.com) is a principal investment firm that primarily provides long-term debt and equity capital to lower middle market companies and debt capital to middle market companies. Main Street's portfolio investments are typically made to support management buyouts, recapitalizations, growth financings, refinancings and acquisitions of companies that operate in diverse industry sectors. Main Street seeks to partner with entrepreneurs, business owners and management teams and generally provides "one stop" financing alternatives within its lower middle market portfolio. Main Street's lower middle market companies generally have annual revenues between $10 million and $150 million. Main Street's middle market debt investments are made in businesses that are generally larger in size than its lower middle market portfolio companies.

Main Street, through its wholly owned portfolio company MSC Adviser I, LLC ("MSC Adviser"), also maintains an asset management business through which it manages investments for external parties. MSC Adviser is registered as an investment adviser under the Investment Advisers Act of 1940.

Contact:
Emily Roberts
eroberts@valleyrubber.solutions

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SOURCE GRT Rubber Technologies

FAQ

What is GRT Rubber Technologies' recent acquisition about?

GRT Rubber Technologies has acquired Valley Rubber to enhance its manufacturing capabilities in engineered rubber products for mining and industrial applications.

How does the acquisition of Valley Rubber impact GRT's market presence?

The acquisition allows GRT to expand its international footprint and access new markets, especially in Chile, Mexico, and Peru.

What role does Main Street Capital play in GRT's acquisition?

Main Street Capital facilitated the acquisition as GRT's capital partner, supporting its growth since 2014.

What are the benefits of GRT's acquisition of Valley Rubber?

The acquisition improves GRT's product offerings and market share, leveraging synergies between the two companies.

When was the acquisition of Valley Rubber announced?

The acquisition was announced on November 18, 2021.