HIBBING, Minn. (Aug. 21, 2008) — The board of directors of Industrial Rubber Products Inc. have approved purchase of the firm by affiliates of Lime Rock Partners and Thompson Street Capital Partners, two private equity firms.
If shareholders accept the deal, the company, a maker of elastomeric protective coatings for the pipeline and industrial industries, will be purchased by the two equity businesses for $16.50 a share in cash. The firms did not say how many shares were involved. The acquisition price represents an approximate 49 percent premium to the average closing price for Industrial Rubber over the preceding 20 trading days, the company said.
Industrial Rubber said it's likely the current management team, headed by President Daniel Burkes, will continue in their present roles and retain some ownership.