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.
In addition to its rubber compounding, Hexpol also is a supplier of thermoplastic elastomers and thermoplastics.
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.