Main Tape Company

Main Tape is a manufacturer of pressure sensitive tapes that are used to temporarily protect the surfaces of stainless steel and other metals during shipping. Main Tape was one of two sister companies, the other being Main Steel Polishing Company, that collectively were known as the “Main Companies”. Main Tape was a major supplier to Main Steel, providing it with a large percentage of the tapes Main Steel used to protect metal surfaces during transit. Main Steel in turn acted as a distributor of Main Tape products to independent third parties in the steel processing industry.

In the late 1990s, both Main Steel and Main Tape undertook ambitious capital equipment expansion programs designed to increase capacity, with both programs funded mostly by debt. During 2001, as the economy began to soften, the Main Companies made the difficult decision to divest Main Tape to improve liquidity. The owners of the Main Companies engaged Grace Matthews to manage the divestiture and set three major goals for a transaction: (1) a deal that was mostly cash, (2) an accelerated process, and (3) the negotiation of a supply agreement to ensure the continuity of tape supplies to Main Steel.

Grace Matthews identified several qualified buyers who had the means and ability to close a transaction quickly. After receiving several offers, Legg Mason Merchant Banking acquired Main Tape with senior financing provided by Harris Bank. Grace Matthews was able to deliver on all three of the Main Companies goals and, from start to finish, the process took less than five months including the execution of the desired supply agreement.