Audax sells Preferred Compounding to HEXPOL

Audax Private Equity has sold Copley, Ohio-based Preferred Compounding, a provider of proprietary and custom mixed rubber compounds, including strips, slabs, pellets and calendered sheet end forms. The buyer is HEXPOL. No financial terms were disclosed. William Blair & Company was financial adviser to Preferred on the transaction.


BOSTON–(BUSINESS WIRE)–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.

Audax Group is a leading alternative investment manager with offices in Boston, New York, and San Francisco. Since its founding in 1999, the firm has raised over $25 billion in capital across its Private Equity and Private Debt businesses. Audax Private Equity has invested over $5 billion in more than 125 platforms and 775 add-on companies. Through its disciplined Buy & Build approach, Audax seeks to help platform companies execute add-on acquisitions that fuel revenue growth, optimize operations, and significantly increase equity value. With more than 240 employees and over 100 investment professionals, the firm is a leading capital partner for North American middle market companies. For more information, visit the Audax Group website

Preferred Compounding supplies proprietary and custom mixed rubber compounds to customers including molders, extruders, mixers and others in the rubber goods market. The Company provides extensive compound development, improvement and testing resources, including on-site support during compound implementation and ongoing support after product delivery. Primary industries served are automotive, general industrial, and infrastructure. For further information please visit: