Copley-headquartered Preferred Compounding, the second largest company of its type in North America, has been sold by its private equity owner to a Swedish polymers group.

The sales price was about $232 million, according to a news release from Sweden-based HEXPOL, Preferred Compounding’s owner as of July 1.

HEXPOL said it will immediately begin integrating Preferred Compounding into its operations.

“Possible restructuring and cost synergies will be evaluated and communicated separately at a later stage,” HEXPOL said in a news release.

Preferred Compounding makes custom rubber compounds for molders, extruders and other rubber goods manufacturers in the automotive, general industry, power and infrastructure industries. It has about 540 employees in five U.S. facilities and one in Mexico.

Until about 10 months ago, the company headquarters was in Barberton, one employee said; the executive staff moved to Montrose offices in the Restaurant Hill section of Copley off state Route 18. More than 100 people continue to work at the Barberton plant.

Preferred Compounding since 2016 had been owned by investment firm Audax Private Equity, part of the larger private equity firm Audax Group.

HEXPOL called Preferred Compounding a well-run and profitable advanced rubber compounder and said the company had 2018 revenue of about $240 million. HEXPOL also owns other companies in the United States, including HEXPOL Silicone Compounding in Mogadore. HEXPOL says it has 47 factories and about 4,600 employees, mainly in Asia and the United States.

The Preferred Compounding acquisition brings an improved supply chain and leading research, development and engineering services for HEXPOL in the Americas, the company said.

The acquisition will strengthen HEXPOL’s global positions in advanced polymer compounds with improved supply chain, cutting-edge expertise in polymer materials and solid knowledge of applications, said Mikael Fryklund, HEXPOL Group president and chief executive officer.

 

Jim Mackinnon can be reached at 330-996-3544 or jmackinnon@thebeaconjournal.com. Follow him @JimMackinnonABJ on Twitter or www.facebook.com/JimMackinnonABJ