Year One: MPC's Thriving Partnership with Compass Group
Last month, Compass Group celebrated the one-year anniversary of our partnership with Mearthane Products Corporation (MPC), a developer and manufacturer of advanced polyurethane components in a wide range of end markets and applications. Over the past year, MPC achieved significant milestones to help the company advance their long-term growth plans and deliver improved benefits to its employees.
Since closing in 2022, the MPC team, in partnership with Compass, launched an ambitious M&A strategy, completing four acquisitions in the first six months:
- In December 2022, MPC acquired Precision Elastomers, Inc. (PEI), a manufacturer of custom thermoset polyurethane and silicone components based in Ipswich, Massachusetts.
- In January 2023, MPC acquired Merritt Precision Technology (MPT), a manufacturer and service provider of polyurethane components used in semiconductor manufacturing based in Apex, North Carolina.
- In March 2023, MPC acquired Whitefield Plastics Corporation (WPC), a manufacturer and provider of high-performance polyurethane products used primarily in the energy sector based in Houston, Texas.
- In June 2023, MPC acquired American Urethane, Inc., a manufacturer of custom thermoset polyurethane products for diverse applications based in Odenton, MD.
MPC's acquisitions have been instrumental in expanding the company's reach by opening doors to new customer bases and markets, such as the semiconductor and energy sectors. The acquisitions have also expanded the company’s manufacturing capabilities, allowing them to provide larger products with diverse applications including products for industrial piping, factory automation components, and railway safety components.
Leveraging New Partnerships
After finalizing the four bolt-ons, the MPC team initiated an extensive supply chain review, and identified +$1mm of annualized savings targets through strategic vendor management and capitalizing on increased purchasing power through scale. This process also ensured consistent pricing across all MPC’s locations and improved technical relationships with MPC’s main vendors.
During integration of the acquired entities, the team quickly consolidated financial reporting and standardized internal procedures to track performance metrics at each facility. By proactively tracking this data, the organization is gaining an understanding of cost opportunities and launching improvement efforts.
Commitment to Employees
As a result of the four bolt-ons, MPC welcomed +100 new employees. Recognizing the pivotal role employees play in MPC's success, the company introduced a comprehensive benefits package in July ‘23. The plan is accessible to all employees, including those who have newly joined. The health benefits package includes three distinct plan options, each including vision and dental coverage. The company also rolled out a new and improved 401k plan and drove improved efficiencies in HR with online training, Performance Management, and Time and Attendance processes.
MPC has a bright future ahead. The organization will continue to work with our Compass Guides in the areas of Human Resources, Digital Transformation, Legal, and Marketing to further bring senior-level expertise to help achieve MPC’s goal of establishing themselves as a market leader in the thermoset polyurethane space and setting new industry standards.Back