Feb 2016

Audax Private Equity Announces the Acquisition of Preferred Compounding

Audax Private Equity (“Audax”) today announced that it has partnered with management to acquire Preferred Compounding (“Preferred”) from Wingate Partners. Terms of the transaction were not disclosed.

Headquartered in Barberton, Ohio, Preferred is a leading developer and manufacturer of highly specialized, value-added elastomeric compounds in North America. Preferred supplies proprietary and custom mixed rubber compounds to customers including molders, extruders, mixers and others in the rubber goods market. Primary industries served include automotive, construction, power generation, and roll goods. In addition to its headquarters, the Company has plants located in Tallapoosa, Georgia, Huntingdon, Tennessee, and San Luis Potosi, Mexico. For more information on Preferred, visit www.preferredperforms.com.

KeyBanc Capital Markets advised Preferred and Wingate Partners. Kirkland & Ellis LLP served as counsel to Audax.

Geoffrey S. Rehnert, Co-Chief Executive Officer, Audax Group, said, “We’re looking forward to working with Ken Bloom and the rest of the management team. There is a tremendous opportunity to continue expanding Preferred’s scale and capabilities through both organic and acquisition growth.”

Ken Bloom, CEO, Preferred Compounding, said, “We are excited to continue growing the business organically and by leveraging Audax’ expertise in identifying and integrating add-ons. I look forward to working with our new partner and creating a larger strategic enterprise.”