PUBLIC NOTICE OF SALE: Specialty Rubber Products Manufacturer

Specialty Rubber Products Manufacturer
Acquisition Opportunity

COMPANY OVERVIEW

The acquisition prospect presents a family-owned business renowned as a premier rubber polymer manufacturer and Calendering operation. The company boasts an extensive array of top-tier rubber Calendering equipment, products and services. Established over three decades ago, the business, referred to as the “Company,” came under current ownership in 2016. Distinguished for its specialized and high-margin rubberized offerings, the Company offering encompasses fabric, bearing pads, roof systems, polymer solutions, protective linings, cord production, die cutting services, and engineering expertise. Utilizing on-site rubber mixing and the manufacturing capabilities such as calendering, compression molding, autoclave and press curing. the Company operates from its own building and offices situated in the Midwest.

The core focus of their offering consists of high-margin rubberized products tailored for specialized uses across diverse industry sectors including construction, automotive, oil and gas, safety, government, and consumer industries. With ISO 9000:2015 certification and specific compounds IMDS certified for the European market, the Company maintains stringent quality standards. However, its growth strategy has predominantly relied on passive customer acquisition, lacking a dedicated sales and marketing team essential for sustained expansion.

SITUATION OVERVIEW

The Company has faced a decline in revenue attributed to its largest consumer customer scaling back their orders. Despite robust margins on specialty products, insufficient volume growth coupled with high operating expenses have led to challenges. Over the past five years, the Company incurred small operating losses in three of those years. In 2023, lower-than-projected revenues in resulted significant losses and challenging operational hurdles. While there has been a gradual recovery in market demand, the inability to secure adequate capital for expansion has led the owners to decide on selling the company. The current liquidity will sustain short-term operations until a suitable buyer is found.

OPPORTUNITY

There is an opportunity for an existing operator in the segment or a new player to acquire the assets and know-how of a specialty rubber company with an
established customer base. The Company’s factory is a clean facility (non-carbon black) with advanced color mixing capabilities and extensive calendaring capacity.
Its Midwest location is strategically advantageous for new industry entrants or the expansion of existing operators.

NOTE: The Company’s business plan and financials have not been audited by Newpoint Advisors Corporation and are subject to the potential capital provider’s due diligence. The purpose of this document is to gauge interest in potential buyer or investor interest

About Newpoint Advisors Corporation.
Newpoint Advisors Corporation is a North American financial advisory firm dedicated to improving troubled and financially underperforming small to lower middle market businesses. Our collaborative, process-oriented approach allows us to deliver objective solutions for a fixed fee and on a fixed timeline. Newpoint Advisors believes in a cooperative team approach: we work with our clients to educate them in ways that maximize profitability and growth. Our tool kits provide a tangible deliverable to assist in monitoring borrowers. Please contact any members of our team if you are interested in this opportunity.

Peter Bendoris
[email protected]
(703)328-0863

Graham McFarland
[email protected]
(512) -264-4037