Hackney Group Bounces Into Rubber Industry –

Capitalizing on a dip in the oil and gas industry, The Hackney Group acquired Industrial Rubber Products for an undisclosed amount, said Scott Watson, vice president of transactions at the buyout firm.

Industrial Rubber molds rubber products for use in the petro-chemical and mining industries, including oil rigs in the Gulf of Mexico, Mr. Watson said.

The company, based in Carencro, La., had 1998 revenue of approximately $7.4 million. Although he declined to discuss the size of the transaction, Mr. Watson said his firm was able to broker a good price because of the recent slowdown in oil industry activity. The Hackney Group rarely pays multiples of more than five times EBITDA for a company, he added.

Senior debt was provided by Citizens Business Credit Corp. The Hackney Group committed equity amounting to 25% of the deal, Mr. Watson said.

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Based in Birmingham, Ala., The Hackney Group draws on the personal capital of its founder, T. Morris Hackney, a primary shareholder in Nasdaq-listed Citation Corp. Mr. Watson declined to discuss the amount of capital available to the firm.