Main Street Announces Follow-On Investment

Rhea-AI Summary

Main Street Capital Corporation (NYSE: MAIN) has completed a $22.1 million follow-on investment in GRT Rubber Technologies LLC to support its acquisition of Valley Rubber, enhancing GRT's capabilities in the engineered rubber products sector. This investment diversifies GRT's customer base and product offerings while continuing its growth strategy. GRT, a major player in this industry, has a history dating back to 1880 and aims to leverage Valley's established platform to boost operations and sales channels. Main Street's ongoing commitment to GRT reflects its focus on lower middle market investment opportunities.

Positive

• Completed $22.1 million follow-on investment in GRT Rubber Technologies.
• Acquisition of Valley Rubber enhances GRT's customer base and product offerings.
• GRT has a long-standing reputation in engineered rubber products, contributing to business stability.

Negative

• None.

HOUSTON, Nov. 19, 2021 /PRNewswire/ -- Main Street Capital Corporation (NYSE: MAIN) ("Main Street") is pleased to announce that it recently completed a follow-on investment in an existing portfolio company. Main Street, along with its co-investor, made the investment in GRT Rubber Technologies LLC ("GRT" or the "Company") to support the Company's acquisition of Valley Rubber, L.L.C. ("Valley"), a complementary business in the engineered rubber products industry, significantly expanding the Company's customer base and product offerings. The follow-on investment consists of an additional $22.1 million first lien, senior secured term debt investment.

Headquartered in Paragould, Arkansas, with business origins dating back to 1880, GRT 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. This acquisition adds significant value to GRT's existing portfolio of products and services and continues the Company's growth strategy. Additionally, this acquisition provides incremental sales channel and end-market diversification. Main Street made its initial investment in GRT during the fourth quarter of 2014.

Founded in 1967 and headquartered in Falkville, Alabama, Valley is a manufacturer of custom engineered rubber products, including rubber wear liners, truck bed liners, screen media and other rubber products for mining, aggregates, infrastructure and industrial applications. Valley's long-established and well-trusted platform has been a leader in its end-markets and will contribute significant customers and scale to GRT's operations.

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.

Contacts:
Main Street Capital Corporation
Dwayne L. Hyzak, CEO, dhyzak@mainstcapital.com  
Jesse E. Morris, CFO & COO, jmorris@mainstcapital.com                 
713-350-6000

Dennard Lascar Investor Relations
Ken Dennard | ken@dennardlascar.com  
Zach Vaughan | zvaughan@dennardlascar.com  
713-529-6600

 

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SOURCE Main Street Capital Corporation

FAQ

What is the recent investment by Main Street Capital Corporation?

Main Street Capital Corporation has made a follow-on investment of $22.1 million in GRT Rubber Technologies to support the acquisition of Valley Rubber.

How does the acquisition of Valley Rubber benefit GRT?

The acquisition of Valley Rubber significantly expands GRT's customer base and product offerings, enhancing its market presence.

What is the significance of Main Street Capital's investment in GRT?

Main Street's investment reflects its commitment to the growth of lower middle market companies, supporting GRT's strategic expansion.

When did Main Street Capital initially invest in GRT?

Main Street Capital made its initial investment in GRT during the fourth quarter of 2014.