Blue Point Capital Partners announced today that the firm has sold its interest in Quality Synthetic Rubber to Lexington Precision Corporation, a portfolio company of Industrial Growth Partners. “Blue Point was a true partner and provided very impactful operational and strategic support to the business. During our ownership by Blue Point, we have succeeded in building a global, market-leading electrical and medical components business serving diversified end markets. We have a fantastic team in place and a platform equipped for the next phase of growth,” said Randy Ross, chief executive officer of Quality Synthetic Rubber.
Quality Synthetic Rubber (“QSR”) is a manufacturer of highly engineered, molded silicone components serving the medical, automotive, heavy transportation and industrial markets. The company’s primary product line includes precision silicone seals that are integrated into automotive and industrial electrical connector assemblies and high precision silicone medical components such as vessel loops, IV components, catheters, and surgical and sterilization modules. The company was founded in 1966 and is based in Twinsburg, OH (www.qsr-inc.com).
Under the ownership of Blue Point, QSR’s revenue and EBITDA increased by more than 50 percent, China revenues grew four-fold, medical revenues increased five-fold and together the China and medical divisions now represent a large and rapidly growing portion of the overall business.
“We are extremely pleased with what we’ve been able to accomplish alongside the management team at QSR, driving significant growth and diversification while navigating an unprecedented downturn in 2009. We adopted a very clear value-creation plan at acquisition focused on diversifying the business beyond U.S. automotive via expansion of the medical segment and by benefiting from the rapid growth in the China market,” said John LeMay, a partner with Blue Point. “Execution of the strategy was driven by QSR’s exceptional management team together with Blue Point operating and China resources put in place to support the strategy.”
Blue Point Capital Partners is a lower-middle-market private equity firm specializing in recapitalizations, corporate divestitures and buyouts. Blue Point invests in manufacturing, distribution and service businesses generating $20 million to $200 million in revenue. The firm has offices in Charlotte, NC; Cleveland, OH; Seattle, WA and Shanghai, China (www.bluepointcapital.com).
Industrial Growth Partners provides equity capital to lower-middle market manufacturing and manufacturing services companies with revenues of $30 million to $100 million. The firm invests equity in a range of transactions involving a change of ownership, such as management buyouts, leveraged buyouts, corporate divestitures, recapitalizations and management buy-ins. The firm is based in San Francisco, CA (www.igpequity.com).