KKR to Acquire Minnesota Rubber and Plastics from Norwest Equity Partners

Deal Represents KKR’s Second Industrials Middle Market Transaction

MINNEAPOLIS & NEW YORK–(BUSINESS WIRE)–Quadion LLC, d.b.a. Minnesota
Rubber and Plastics
(“MRP” or the “Company”), a leading provider of
elastomer and thermoplastic solutions, announced today that it is being
acquired by KKR,
a global investment firm, from Norwest
Equity Partners
(“NEP”), a Minneapolis-based middle-market equity
investment firm. This transaction marks KKR’s second acquisition of a
middle-market business in the industrials sector and is being funded
through KKR’s Americas XII Fund. Financial details of the transaction
were not disclosed.


MRP offers highly engineered elastomer and thermoplastic solutions for
medical, water, industrial and other end markets globally. For over 70
years, the Company has built a strong reputation for its ability to
design, develop and manufacture products for harsh environments, tight
tolerances and technically demanding applications, including
multi-material solutions.

“We have been very impressed by MRP’s innovative technologies and
differentiated solutions, including over 1,000 custom rubber, plastic
and silicone formulations, and tremendous technical resources committed
to delivering market leading innovations for their customers. We’re
proud to support the Company and see considerable opportunity for it to
continue to grow,” said Pete Stavros, Member of KKR and Head of KKR’s
Industrials investment team. “As with our other industrials portfolio
companies, we plan to implement a broad-based employee engagement model.”

Over the past seven years, KKR’s Industrials team has focused on
employee engagement as a key driver in building stronger businesses. The
cornerstone of the strategy has been to allow all employees to take part
in the benefits of ownership by granting them the opportunity to
participate in the equity return directly alongside KKR. KKR also
supports employee engagement by investing in training across multiple
functional areas, driving improvements in worker safety and by
partnering with the workforce to give back in the community.

Jay Ward, MRP CEO, stated, “NEP provided exceptional support and
strategic insights to build a strong foundation for growth. We are
excited to work with KKR, a global leader who has industrial expertise
and a shared vision, to capitalize on this foundation and continue to
provide our valued customers integrated elastomer and plastic solutions
in critical applications.”

“MRP is a great example of our firm’s investment strategy. Over the last
six years, we worked closely with management to significantly impact the
performance of the Company to position it for the next chapter of growth
and success. KKR is a wonderful fit for MRP,” shared Tim DeVries, NEP
Managing Partner.

This transaction, which is subject to regulatory approvals and other
customary closing conditions, is expected to close by year-end 2018.
Fully committed financing has been led by sole arranger KKR Capital
Markets and is being provided by Crescent Mezzanine Partners and PSP
Investments Credit USA LLC. KKR was advised in the transaction by
Benesch, Friedlander, Coplan & Aronoff LLP. MRP and NEP were advised by
Houlihan Lokey, Skadden, Arps, Slate, Meagher & Flom LLP, and Ballard
Spahr LLP.

About Minnesota Rubber and Plastics

Minnesota Rubber and Plastics is a global leader in elastomer and
thermoplastic solutions, with engineering and manufacturing facilities
across North America, Europe and Asia. With deep materials science
expertise, MRP offers full service capabilities that range from
engineering mission-critical components to providing complete
manufacturing solutions for technically demanding applications. For more
information, please visit www.mnrubber.com.

About KKR

KKR is a leading global investment firm that manages multiple
alternative asset classes, including private equity, energy,
infrastructure, real estate and credit, with strategic manager
partnerships that manage hedge funds. KKR aims to generate attractive
investment returns for its fund investors by following a patient and
disciplined investment approach, employing world-class people, and
driving growth and value creation with KKR portfolio companies. KKR
invests its own capital alongside the capital it manages for fund
investors and provides financing solutions and investment opportunities
through its capital markets business. References to KKR’s investments
may include the activities of its sponsored funds. For additional
information about KKR & Co. Inc. (NYSE: KKR), please visit KKR’s website
at www.kkr.com
and on Twitter @KKR_Co.

For more information about KKR’s Industrials team and the employee
engagement model please visit the KKR
Industrials page
on LinkedIn, @KKR_Industrials
on Twitter and KKR
Industrials
on YouTube.

About Norwest Equity Partners

Norwest Equity Partners (NEP) is a leading middle market investment firm
focused on partnering with business owners to build companies into
industry leaders. With a reputation for quality investments and
exceptional financial returns since 1961, NEP offers creative and
flexible transaction solutions and believes in long-term relationships.
Based in Minneapolis, Minnesota, NEP focuses on equity investment
opportunities for growing and profitable companies within agriculture,
business services, consumer, distribution, diversified industrials,
energy, and healthcare. For additional information about NEP, please
visit www.nep.com.

Contacts

Media:
KKR
Kristi Huller or Samantha Norquist,
212-750-8300
media@kkr.com
or
Minnesota
Rubber and Plastics
Mary Pat Pearson, 952-927-2133
mpearson@quadion.com
or
Norwest
Equity Partners
Heather Goodwin, 612-215-1676
hgoodwin@nep.com