CW Industries makes bee-line for Mantaline

MANTUA, Ohio—CW Industrial Partners, a family-backed private equity firm based in Cleveland, has added another middle-market firm to its portfolio with the acquisition of Mantaline Corp.

Mantua-based Mantaline is a leading manufacturer of customized, extruded rubber and plastic profiles for the automotive, heavy truck and industrial markets.

"We are thrilled to announce the acquisition of Mantaline," Matt Lombardo, CWI partner, told Rubber News March 26. "Mantaline's technology, engineering and operational excellence, coupled with industry leading products, sets the foundation for a strong platform for growth.

"We are excited to partner with, and support, Mark Trushel, the Mantaline management team and employees with the achievement of their long-term strategy."

According to Lombardo, the time was right for the purchase of the former 100-percent ESOP-owned company. Terms of the acquisitions were not disclosed.

"I think the business was in a good position, and the management team did a lot to improve its operations coming out of COVID," Lombardo said. "We thought there was something more we could do than another buyer could, with some fresh blood and a fresh investment."

Before settling on the March 1 purchase of Mantaline, Lombardo said CWI had been eyeing firms in the plastics and rubber industry for "some time." The purchase was announced by CWI March 12.

"We have a lot of experts in our network who know this industry very well," he said. "Mantaline is very well-run operationally, with good customers and good capabilities. And there are a few things we are looking at doing to continue to grow the business further."

Mantaline marks the eighth business—nearly all in the industrial market—in CWI's portfolio, Lombardo said.

"We make investments in industrial manufacturing businesses," he said. "Really any business that engineers a product or piece of equipment."

Mantaline represents the first company for CWI that processes rubber and plastics with extrusion. CWI did invest in an injection molder some years ago, though that business is no longer with CWI.

"Mantaline does have some secondary, value-added operations, as well," Lombardo noted, such as insulation and protector applications.

The approximately 150-person Northeast Ohio company predominantly serves the automotive seals and gaskets space, such as those required for sunroofs or doors in automotive production.

Mantaline also sees some annual revenue—net sales for the firm were not disclosed—from the Class A heavy truck market, and other general industrial applications after that.

They also are growing in the overhead door industry. Mantaline serves mostly OEMs, though there is some aftermarket percentage for the mid-market company as well.

Whether a sale is for high- or low-volume runs is entirely dependent on the customer, Lombardo said.

"We are excited to transition from an ESOP-owned business to partnering with CW Industrial Partners given the firm's industry expertise and demonstrated ability to identify and drive growth opportunities across industrial manufacturing businesses," Mantaline CEO Mark Trushel said. "CWI is an ideal partner for Mantaline given their focus on plastics and polymer businesses and strong operational acumen."

Mantaline, founded in 1964, also has manufacturing locations in Hiram, Ohio; San Antonio, Texas; and Monterrey, Mexico.

The company boasts a 60-plus year track record of offering "a comprehensive array of rubber and plastic products to a loyal, blue-chip customer base."

"We are just very excited about buying a Cleveland-area business that maintains a core focus for our firm," Lombardo said.

Mezzanine financing and equity for the acquisition were provided by PNC Mezzanine Capital. Senior financing was provided by Premier Bank. CWI was advised by Calfee, Halter and Griswold on the transaction.

Angle Advisors, based in Birmingham, Mich., acted as investment banking adviser to Mantaline.

Angle's professionals have completed 297 transactions since 2009 for multinational corporations, privately-held companies, private equity funds and public sector clients.

CWI, founded in 1999, comprises "primarily successful entrepreneurs and executives" who contribute to the evaluation and investment process.

CWI's other companies are involved in precision machining, engineering, manufacturing and other activities, and serve markets ranging from aerospace to home construction materials.

"We are appreciative of the many professionals who aided in completing this transaction," Trushel said. "We want to say a special thanks to the most significant members of our transaction team, whose performance was outstanding."