VICKSBURG, Miss. (March 26, 2010)—U.S. Rubber Reclaiming Inc., the oldest rubber recycling company in the U.S., has left the butyl reclaim business and is seeking a buyer for its rubber mulch operation.
In early March, USRR retained Easton, Md.-based Equity Partners Inc., an investment banking firm which specializes in helping firms in financial distress, to help the company find a buyer.
USRR President Don LaGrone said the company plans on going forward with 15 employees, rather than the 50 or 60 it has had in the past.
USRR is operating under a forbearance agreement from its bank, which has discontinued funding, according to LaGrone. The main reason is that USRR lost its largest customer for reclaimed butyl, Goodyear, which finds it cheaper to go abroad for its reclaimed butyl supply.
According to Equity Partners, the plan is for USRR's current management to continue operations under current ownership.
“Our ideal timeline for finding a purchaser is four to six weeks, though it's tough to say whether that's possible,” said Matt LoCascio of Equity Partners. “If we don't find a buyer, the most likely alternative would be the liquidation of the business.”
Meanwhile, three or four organizations have expressed interest in USRR, although no offers have been made yet, according to LaGrone.