Robbins & Grey Mountain Partners
Robbins has been acquired by Grey Mountain Partners.
Decosimo acted as exclusive financial and sell-side advisor.
About Robbins, LLC
Based in Muscle Shoals, Alabama, Robbins is one of the nation’s oldest and largest rubber compounding producers and the market leader in manufacturing curing tubes and supplies for the tire retreading industry. Robbins was founded in 1921 and currently operates three manufacturing facilities with over 200 employees.
About Grey Mountain Partners
Based in Muscle Shoals, Alabama, Robbins is one of the nation’s oldest and largest rubber compounding producers and the market leader in manufacturing curing tubes and supplies for the tire retreading industry. Robbins was founded in 1921 and currently operates three manufacturing facilities with over 200 employees.
Client Objectives
Poncet Davis Jr., the Company’s sole owner, had two important objectives: liquidity for estate planning, and a buyer that would provide opportunity for the management and employees of the Company to grow. Since 1941, the Davis family had owned Robbins, and Mr. Davis was keenly interested in the welfare of the employees.
Maximizing Value
The CEO and COO were interested in retiring within six to twelve months after closing. As a result, the number of financial buyers comfortable with such a transition was significantly reduced. However, the owner’s desire to protect the interests of employees limited the number of strategic buyers. Additionally, petrochemical prices were fluctuating rapidly, which impacted gross margins. As a result, we focused on finding private equity groups with similar platform companies or significant industry management experience.
Disciplined Process
We identified private equity groups with similar platform companies or those with extensive operating experience that could bridge the management transition issue. Additionally, we focused on the depth of mid-level management to address concerns of a management transition. In order to lessen the impact of fluctuating margins, we provided a detailed cost analysis of raw materials and a customer-by-customer projection.
Proven Results
0.0After receiving several Indications of Interest from both financial and strategic buyers, the Company chose an offer from Grey Mountain Partners, a private equity group from Boulder, Colorado. Mr. Davis achieved his objectives, and the management and employees of Robbins found a great partner in Grey Mountain.