The Audax Group investment firm has bought a stake in ColorMatrix Corp., a leading liquid-color maker based in Berea, Ohio.
No purchase price was disclosed in the deal, and the size of Audax's ownership stake also was not revealed. ColorMatrix Chief Executive Officers John Haugh and Michael Shaughnessy will remain with the firm and continue to own a portion of the business, which they founded in 1978. ColorMatrix's European investors also will retain ownership.
Boston-based Audax ``plans to help accelerate [ColorMatrix's] growth by penetrating new markets, expanding globally and ... completing strategic add-on acquisitions,'' Audax co-CEO Geoffrey Rehnert said in a May 24 news release.
In a follow-up e-mail May 25, Rehnert said ColorMatrix would expand in Asia in ``the near future'' at an undetermined location.
Audax owns about 30 different companies in a variety of industries. The firm was founded in 1999 and currently controls about $2 billion in assets. Audax's main plastic-related holding is Dynisco LLC, a maker of measurement and control devices for plastics. Audax purchased Franklin, Mass.-based Dynisco in 2004.
Audax typically holds its investments for between three and seven years, Rehnert said in the e-mail. ColorMatrix is the third business Audax has purchased since May 1. Audax also has sold two businesses since that date.
The transaction also will consolidate ownership in North America, South America, Asia and Europe into a single global operating group.
ColorMatrix claims to be the world's largest supplier of liquid color, with five production sites worldwide. A report on the Daily Deal Web site said the firm expects to post sales of $120 million this year.
That Web site also said Audax paid $175 million for ColorMatrix, attributing the figure to an unnamed source. Rehnert declined to confirm the figures in that report.
ColorMatrix employs 150 at a 130,000-square-foot site in Berea. It moved there in 2004 after outgrowing a location in nearby Cleveland.
Milwaukee investment bank Grace Matthews Inc. and Cleveland law firm Benesch, Friedlander, Coplan and Aronoff LLP served as advisers on the deal.