Pargould, AR – GRT Rubber Technologies (GRT 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.
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.”
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.”