Audax Private Equity (“Audax”), in partnership with management, has completed the sale of Preferred Compounding Corporation (“Preferred Compounding”, “Preferred” or the “Company”) to HEXPOL (STO:HPOL-B).
Headquartered in Copley, OH, Preferred is a leading provider of proprietary and custom mixed rubber compounds, including strips, slabs, pellets, and calendered sheet end forms. The Company maintains relationships with a broad set of blue-chip customers across several end markets, such as automotive, general industrial, and infrastructure. Under Audax ownership, Preferred completed three add-on acquisitions and significantly increased sales volume.
Jay Mitchell, Managing Director at Audax Group, said, “We are proud to have partnered with Ken Bloom and the Preferred team to help create a market leader in the custom rubber compounding space. The Company has grown to become a leader in engineered and premium compounds that allow customers to meet highly demanding applications. We are thankful to Ken and the team for their efforts in growing the business significantly over the past three years.”
Ken Bloom, CEO of Preferred Compounding, said, “Audax has been a valuable partner in helping us build and transform Preferred through organic growth and three strategic add-on acquisitions. The team looks forward to the next stage of growth with HEXPOL.”
Kirkland & Ellis LLP served as legal advisor and William Blair & Company, L.L.C. served as financial advisor to Preferred. Benesch, Friedlander, Coplan & Aronoff LLP served as legal advisor to HEXPOL.