Global investment firm KKR has signed an agreement to sell Minnesota Rubber and Plastics (MRP) to engineered polymer solutions business Trelleborg Group for approximately US$950 million (£780.2 million), with employees set to receive a pay-out as a result.
MRP has more than 1,450 employees across four US states, the UK and five other countries, including hourly manufacturing production, technical and administrative workers. They will all receive cash payouts, varying based on tenure and employment status, upon the transaction closing.
Employees have also been offered access to pre-paid personal financial coaching and tax preparation services provided by Goldman Sachs Ayco Personal Financial Management in the US and RSM Global for international employees. Deloitte will provide tax services globally.
KKR previously introduced an employee ownership programme for MRP employees as a free, incremental scheme that was not in exchange for benefits, wages or pay increases. The programme included sharing business targets and regular progress updates with all employees, while giving them a voice in capital expenditures and operational improvements.
Pete Stavros, co-head of Americas private equity at KKR, said: “MRP shows the power of building an ownership culture, something we believe many more companies can replicate, and the potential of the shared ownership movement. Trelleborg is a great cultural fit for MRP and the ideal strategic partner. As part of Trelleborg, MRP will continue to be an employee-centric organisation with exciting opportunities for continued innovation and global growth.”
Jay Ward, chief executive officer of MRP, added: “[This] announcement is the culmination of a lot of hard work by our dedicated employees and KKR’s shared ownership model has allowed all MRP colleagues to share in this success. Joining Trelleborg is an exciting opportunity to expand our global reach while we continue to fulfil our commitments to delivering excellence and innovation for our customers.”
The transaction, subject to customary regulatory approvals, is expected to close before the end of the year. KKR and MRP were advised by Houlihan Lokey on financial and merger and acquisition matters, and Kirkland and Ellis on the legal aspects.