The Business

Midwest Industrial Rubber, Inc. (MIR) (www.mir-belting.com) is a St. Louis, Missouri-based value-added supplier of industrial maintenance, repair, and operations products, specializing in the fabrication and distribution of lightweight conveyor belting and related conveyor components and accessories. MIR is the largest independent lightweight belting fabricator/distributor in the U.S. and holds a sustainable, differentiated position as the value and service leader in its marketplace. Through its national network of sales and fabrication centers, MIR serves the conveyor maintenance, replacement, and overhaul needs of more than 2,500 active customers, with a focus on manufacturers of non-discretionary consumer staples (e.g., food, personal care and hygiene, etc.).

 

The Industry

MIR generates the majority of its sales from the food processing and tissue and personal hygiene industries (e.g., bath tissue, feminine care, diapers, etc.), which are large, growing and recession-resistant end markets.  These types of products address basic human needs, exhibit highly inelastic demand, and are rarely cut from consumer budgets.  More importantly, these segments are highly regulated and exhibit more predictable maintenance spending cycles than other manufacturing environments.  The food processing and tissue and personal hygiene industries collectively generate over $1.0 trillion in sales annually and typically account for nearly 20% of U.S. annual personal consumption expenditures.

 

The Process

Prestwick Partners initiated this transaction and acted as the exclusive financial advisor to MIR and its shareholders.  Prestwick designed an M&A process, prepared marketing materials, evaluated acquisition proposals and negotiated the transaction with Incline Equity Partners, a Pittsburgh, Pennsylvania-based private equity group.