MALMO, Sweden—Hexpol Group, the world's largest rubber compounder, is getting even bigger as it has closed a deal to purchase Preferred Compounding Corp. from private equity firm Audax Group in a deal worth $232 million.
Copley, Ohio-based Preferred was the No. 2 compounder in North America—trailing only Hexpol—posting 2018 sales of about $240 million, according to a news release from Sweden's Hexpol Group. Preferred employs about 540 and has six factories, five in the U.S. and one in Mexico.
Hexpol said the $232 million acquisition was completed July 1 on a cash and debt-free basis, and was funded by a combination of cash, existing bank facilities and a new credit facility.