KKR to sell Minnesota Rubber and Plastics to Trelleborg Group for $950m

The transaction is expected to close before the end of the year.

  • KKR acquired MRP in November 2018
  • MRP employees will receive cash payouts upon closing of the transaction, with payouts varying based on tenure and employment status
  • KKR and MRP were advised by Houlihan Lokey as financial and M&A advisor

KKR has agreed sell Minnesota Rubber and Plastics, a provider of materials science-based elastomer and thermoplastic solutions, to Trelleborg Group, for $950 million.

KKR acquired MRP in November 2018. 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.

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, a partner at KKR who leads KKR’s Industrials private equity team, in a statement. “This is a great outcome for all employee owners and our limited partners in KKR’s Americas XII Fund.”

Since 2011, KKR has implemented broad-based employee ownership and alignment programs, first pioneered by KKR’s U.S. Industrials private equity team and more recently expanding across all control investments within KKR’s Americas Private Equity franchise. To date, KKR has awarded billions of total value through broad-based equity programs to over 45,000 non-senior employees across over 25 companies. KKR currently has 30 portfolio companies with ownership programs. In April 2022, KKR joined more than 60 leading organizations in becoming a founding partner of Ownership Works, a nonprofit created to support public and private companies transitioning to shared ownership models.

MRP’s global employee base is located in the U.S., Mexico, the U.K., China, the Czech Republic, and France. The Company’s U.S. operations are located in Minnesota, Iowa, New York and Wisconsin.

The transaction is expected to close before year-end 2022.

KKR and MRP were advised by Houlihan Lokey as financial and M&A advisor, and Kirkland & Ellis as legal advisor on the transaction.