Wingate Buys Preferred Compounding From Watermill

Wingate Partners has acquired Preferred Compounding Corp., a portfolio company of the Watermill Group. Financial terms weren’t announced.  Baberton, Ohio-based Preferred Compounding offers high-performance elastomeric compounds and is projected to have revenus of $90 million for the fiscal year ended May 31, 2011. Watermill, of Lexington, Mass., is an investment group that has owned Preferred since 202. Wingate is a Dallas PE firm. Sperry, Mitchell & Co. provided financial advice to Preferred.


Preferred Compounding Corp. (“Preferred” or the “Company”) of Barberton, OH, a portfolio company of The Watermill Group of Lexington, MA, has been acquired by Wingate Partners of Dallas, TX.  Sperry, Mitchell & Company, Inc. initiated this transaction, assisted in the negotiations, and served as exclusive financial advisor to Preferred Compounding Corp.
Preferred Compounding Corp. ( is a leading provider of highly-engineered, high-performance elastomeric compounds.  Founded in 1973, the Company provides turn-key compounding services to rubber component manufacturers in a diverse range of end markets, including construction, consumer, energy, infrastructure, medical and transportation.  Projected revenues for the fiscal year ending May 31, 2011 are $90 million.

Watermill Group ( is a private investment group which acquires North American-based middle market companies, primarily focusing on the manufacturing, distribution and service industries.  Watermill seeks to partner with management teams to drive strategic change, improve operations, and realign balance sheets.  Watermill’s partners collectively have over 140 year of executive management experience.  Watermill was founded in 1978 and is based in Lexington, MA.  Watermill had owned Preferred since 2002.

Wingate Partners ( is a private equity firm focused on control investments in manufacturing, distribution and service businesses with sales between $50 million to $250 million.  Wingate specializes in partnering with management in companies facing an industry transition.  Wingate was founded in 1987 and is based in Dallas, TX.
Sperry, Mitchell & Company, Inc. ( is an investment banking firm specializing in middle-market merger and acquisition advisory services.  Since the firm’s founding in 1986, Sperry Mitchell has completed hundreds of transactions in a wide range of industries, with values ranging from $10 – $450 million.