BARBERTON, Ohio—Preferred Compounding Corp. has been purchased by Audax Private Equity and members of the custom mixer's management team.
Audax bought the growing business from Wingate Partners, a Dallas-based private equity firm. Terms of the deal, which was finalized on Feb. 1, were not disclosed.
An official at Audax said it was acquiring Preferred Compounding because of its growth during the last few years and its great potential to expand further.
“We help transform market leaders into substantially larger and better-positioned enterprises by building close partnerships with strong management teams,” according to Geoffrey S. Rehnert, co-CEO of Audax, an integral part of Audax Group, which manages more than $9 billion in assets across its private, mezzanine and senior debt businesses.
He said Audax looked forward to working with and supporting Preferred Compounding's managers to enhance the company's capabilities and services.
Wingate's sale of the custom mixer was not unexpected. It is typical in the industry for a private equity firm to help a business grow over a five-year span and then sell it.
“We've grown considerably in the last five years,” said Ken Bloom, president and CEO of Preferred Compounding. “Wingate invested more than $20 million in the business. Now we have a new owner that's bigger, with more resources available and can help us grow further to the next level.”