Success Stories
The Rubber Meets the Road: GreenLiner, LLC Acquires Durable Products, Inc.
Deal Type
Sell-side transaction
Deal Team
Andy Stockett, Andrew Ball
Company Overview
Founded in 1982, Durable Products, Inc. (DPI) is a manufacturer of engineered custom rubber and polyurethane products based in Crossville, Tennessee. The Company’s focus on quality and customer service has made it a leading supplier of custom mats and flooring systems used
by heavy truck manufacturers to reduce noise, vibration, and harshness (“NVH”) in truck cabs.
DPI offers diverse manufacturing capabilities to meet customer needs and specifications, including compression molding, vacuum molding (autoclave & open-cure), polyurethane reaction injection molding, rubber extrusions, die cutting and raw material processing (preforming, calendering and rubber compound mixing).
Situation
As he approached retirement age, second-generation owner Mike Dalton was looking to take a step back from his business and wanted to find a partner that would preserve his father’s legacy. Durable Products is a significant employer in the Crossville area, and Dalton sought a like-minded investor who would not only appreciate the value of the business, but continue to invest in its people.
Challenge
DPI had a significant customer concentration with two main clients. FourBridges positioned this potential challenge as an area of opportunity to partner with a buyer that could help deepen those key relationships further.
In addition, FourBridges had to coordinate the acquisition with a concurrent M&A transaction as GreenLiner was a subsidiary of the original buyer, Vehicle Accessory Group (VAI). VAI was sold in the middle of DPI’s sell-side process, so FourBridges had to be mindful of the timing in which GreenLiner was divested.
Process
FourBridges contacted around 180 prospective buyers that included a diverse mix of private equity backed strategics, strategics and private equity firms. The ideal buyer was found through comprehensive industry research and a full sell-side process. Multiple proposals were solicited from prospective buyers, including several that were significantly higher than an offer received from an interested party before DPI engaged with FourBridges.
Result
Durable Products ultimately sold to GreenLiner for significantly more than the initial offer Mike Dalton received from the “interested party.” In addition to the purchase price, GreenLiner will fill vacant real estate owned by DPI, which will create an additional post-closing income stream. Durable Products will take over all of GreenLiner’s preforming work. Not only does GreenLiner plan to expand DPI’s plant and factory operations, it will increase the company’s employee base in Crossville.