Hexpol: Acquisition of Preferred Compounding
Hexpol announced that it has acquired Preferred Compounding from the Audax Group, a US-based private equity firm. The acquisition price amounts to approximately USD 232 million. The business will be consolidated from 1 July 2019.
Preferred Compounding is an advanced rubber compounder in North America, and key markets include general industry, automotive, power, and infrastructure. The company had sales in 2018 of approximately USD 240 million and around 540 employees in six facilities, five in the USA and one in Mexico.
According to Hexpol, the acquisition is a strategic move to secure global capacity and competence in advanced polymer compounds for its customers. Preferred Compounding is said to bring a competitive advantage to customers in the Americas region, with improved supply chain and research, development and engineering services. Its elastomer capabilities further strengthen Hexpol's offering which means a further step within high performance elastomers, following the acquisitions of the Mesgo Group and Kirkhill Rubber.
“Preferred Compounding has a legacy of technical excellence with a product suite of over 7,500 compounds designed for the most critical applications. Further, approximately 70 % of the compounds are derived from proprietary or enhanced co-developments serviced by highly strategic relationships. This transaction immediately leverages our global supply chain and adds new capabilities, application know-how and additional customer base to Hexpol Compounding Americas as well as broadens and strengthens our presence,” said Tracy Garrison, President Hexpol Compounding Americas.
“This acquisition will strengthen our global positions in advanced polymer compounds with improved supply chain, cutting-edge expertise in polymer materials and solid knowledge of applications. We would like to thank Ken Bloom, Preferred Compounding CEO, for the development of a well-run organization. I wish him all the best as he continues to pursue other professional interests. Lastly and most importantly, this acquisition brings many new and very experienced people into our group. Welcome aboard,” said Mikael Fryklund, President and CEO Hexpol Group.