Monday, August 8, 2022

KKR Agrees to Sell Minnesota Rubber and Plastics to Trelleborg in Another Win

KKR, a leading global investment firm, announced the signing of an agreement to sell Minnesota Rubber and Plastics (“MRP” or the “Company”), a leading provider of materials science-based elastomer and thermoplastic solutions, to Trelleborg Group (“Trelleborg”), a leader in engineered polymer solutions, in a transaction valued at approximately US$950 million.

Since KKR’s acquisition in November 2018 and the introduction of a broad-based employee ownership program, MRP has made significant progress in driving growth and operational excellence. KKR’s investments in the business – including constructing a new global innovation center, optimizing manufacturing facilities, and investing in state-of-the-art new equipment – contributed to significant improvements in safety, input materials waste reduction, speed of new product delivery, and earnings growth. Under KKR’s ownership, MRP has completed acquisitions adding complementary new capabilities in the U.S. and U.K. and awarding shared ownership to all employees of the acquired businesses.

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MRP is the latest example of KKR’s focus on employee ownership and engagement as a key driver in building stronger companies and driving greater financial inclusion. KKR introduced a broad-based employee ownership program for MRP employees as a free, incremental benefit and not in exchange for benefits, wages or wage increases (wages increased over 6% annually during KKR’s investment period). Other pillars of the broad-based employee ownership program included sharing business targets and regular progress updates with all employees, and giving employees a voice in capital expenditures and operational improvements.

All of MRP’s more than 1,450 employees across six countries and four U.S. states, including hourly manufacturing production, technical and administrative employees, will receive cash payouts upon closing of the transaction, with payouts varying based on tenure and employment status. As part of the transaction, employees will receive pre-paid personal financial coaching and tax preparation services. Financial planning advice will be provided by Goldman Sachs Ayco Personal Financial Management in the U.S. and by RSM Global for international employees. Deloitte will provide tax services globally.

“I am proud to have worked alongside MRP colleagues who have contributed in so many ways to the Company’s performance. Together we have been able to deliver the fantastic results that made this sale possible,” said Josh Weisenbeck, Partner at KKR who leads KKR’s Industrials private equity team. “This is a great outcome for all employee owners and our limited partners in KKR’s Americas XII Fund.”

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