In early June, TruSight client Mearthane Products Corporation (MPC) announced the acquisition of American Urethane, a polyurethane manufacturer based in Maryland.
As a client of our Retained Buy-Side Search service, MPC’s acquisition was its second in 2023 supported by TruSight’s team of add-on acquisition experts. With more than a decade of experience in the specialized lower middle market, TruSight’s Retained Buy-Side Search team reaches out directly to business owners, finding targeted, off-market acquisition opportunities, uncovering hidden gems.
Established in 1965, MPC was a pioneer in developing polyurethane rollers and components for the office automation market before it expanded into fitness and recreation, military and defense, medical devices, and a wide variety of industrial and consumer applications. In the last five years, the company has leaned into strategic acquisitions as a key aspect of its growth strategy.
TruSight works with privately-owned companies like MPC, as well as with private equity firms, to expand and enhance their strategic business development efforts, allowing them to focus on closing investment and acquisition deals.
“TruSight has been a valuable resource and important partner in MPC’s rapid growth over the last two years,” said Breck Bailey, who leads in-house M&A business development for MPC. “The TruSight team has added significant value as evidenced by two strategic acquisitions sourced by their team and completed in the first half of 2023.”
And for business owners like those at American Urethane, our team has the expertise necessary for identifying and navigating investment and acquisition opportunities, confidentially and transparently.
Opportunity
The acquisition of American Urethane strengthens MPC’s position as a global technology leader in its industry. Part of its strategic growth plan, MPC has led a series of successful acquisitions since 2022, including the acquisition of Whitefield Plastics Corporation this April, a deal that was also supported by TruSight.
TruSight has been instrumental in identifying companies that align perfectly with MPC’s growth goals, powered by our tech-enabled deal pipeline that provides a consistent flow of curated and qualified opportunities.
Mearthane first approached TruSight in May 2021, facing the challenges of identifying suitable target companies and navigating the complex M&A process.
Engagement
First, TruSight worked closely with MPC’s leadership team to define the criteria for desirable acquisitions. Critical to the process was understanding the client’s financial goals and its commitment to customer service and high-quality products.
Leveraging proprietary company data updated daily by TruSight subsidiary Private Equity Info and utilizing a team of researchers led by our senior deal experts, TruSight conducted a comprehensive search to identify more than 800 potential acquisition targets. After a consultative review process with the client, a target list of 58 potential companies was completed, and TruSight initiated outreach with those business owners.
Once TruSight established contact with compatible companies, critical information was gathered about financial and cultural alignment to ease the due diligence process.
Mearthane had on-demand access to TruSight’s deal pipeline and data room, giving company leadership visibility to new opportunities identified by our researchers in real-time and clarity on how those deals were progressing.
Outcome
In the end, TruSight made contact with 34 target companies, led 7 of those to introductions between the firms, and MPC closed on 2 acquisitions.
Ultimately, TruSight's goal is to give our clients the ability to easily understand and evaluate high-quality opportunities, adding to a firm’s own internal efforts.
“The TruSight team was helpful in efficiently and diligently getting through to the key decision makers at the target companies to provide real-time, substantive feedback,” said Bailey. “We appreciated TruSight’s efforts and would not hesitate to work with them again in the future.”
Whether you work with a private company or private equity firm, TruSight can expand and enhance your business development efforts. Learn about TruSight’s Retained Buy-Side Search offering today and schedule a call with our team.
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