Navis Capital Partners

Our Portfolio > Linatex

Company Description

Linatex is the global niche leader of branded abrasion-resistant industrial rubber products, and a manufacturer of related mineral processing equipment. The business was established in the 1920s in Malaysia and is globally recognized in the mining and sand/gravel industry.

Linatex has manufacturing and distribution capabilities in Malaysia (primary site), Australia, South Africa, the UK and the US. Rubber sheets are produced in Malaysia using a patented production technique that enhances the life span of process equipment.

During Navis ownership, Linatex has expanded into China and Chile, and also acquired a North American competitor .(Durex products)

Investment Rationale

• Company neglected by UK Plc parent, Elementis, as non-core to its main business of pigments/specialty chemicals
• A global brand in its industrial niche, based upon its unique abrasion-resistant rubber product
• Product performance and strength of brand gives company pricing power; ability to rapidly pass on raw material price increases
• End user markets growing rapidly on the back of commodities boom
• Ability to exploit operating leverage due to growth through high fixed cost sales and manufacturing assets