Wingate Partners has sold its portfolio company Preferred Compounding to Audax Private Equity. Wingate partnered with the management team of the company to acquire the business in December 2010.
Preferred Compounding is a developer and manufacturer of elastomeric compounds. An elastomer is any rubbery material made up of long chainlike molecules, or polymers, that are capable of recovering their original shape after being stretched. Customers of Preferred including molders, extruders, mixers and others companies that operate in the automotive, construction, power generation and roll goods markets. Preferred has approximately 400 employees at its four mixing operations in Tallapoosa, GA; Huntingdon, TN; San Luis Potosi, Mexico and Barberton, OH (headquarters) (www.preferredperforms.com).
Over its five year ownership term, Wingate expanded Preferred’s technical and sales organizations, invested over $20 million into its manufacturing plants, and increased its footprint into central Mexico via acquisition. Today, according to Wingate, Preferred is the second largest custom rubber compounder in North America. “Preferred Compounding was an ideal match for Wingate given our focus on manufacturing businesses in transitioning industries,” said Chris Dupré, a Partner at Wingate.
Wingate Partners makes control equity investments in manufacturing, distribution and service businesses, typically with revenues between $50 million and $250 million. The firm was founded in 1987 and is headquartered in Dallas (www.wingatepartners.com).
“Wingate has been a tremendous partner for Preferred Compounding,” said Ken Bloom, Preferred’s CEO. “We worked closely together to develop and implement our business strategies over the past five years, and we are now positioned to take the next step in our growth.”
The Audax Group, the buyer of Preferred Compounding, makes control investments of $10 million to $100 million in middle market companies with transaction values of $25 million to $500 million. Sectors of interest include industrial manufacturing; energy; outsourced industrial services; consumer products; healthcare devices and services; non-asset based logistics; technology; aerospace & defense; business services; and direct marketing. The firm was founded in 1999 and has offices in Boston, New York and Menlo Park (www.audaxgroup.com).
“We help transform market leaders into substantially larger and better-positioned enterprises by building close partnerships with strong management teams,” said Geoffrey Rehnert, co-CEO of Audax Private Equity. “We look forward to working with and supporting the Preferred team to continue to enhance the company’s comprehensive capabilities and services.”
The Cleveland office of KeyBanc Capital Markets (www.key.com) led by Paul Schneir, served as financial advisor to Preferred, and Haynes and Boone (www.haynesboone.com) acted as its legal advisor.
© 2016 PEPD • Private Equity’s Leading News Magazine • 2-2-16
