Plastics compounder Hexpol (Malmö / Sweden; www.hexpol.com) has announced the acquisition of Preferred Compounding (Copley, Ohio / USA; www.preferredperforms.com) from US private equity firm the Audax Group (Boston, Massachusetts; www.audaxgroup.com). Preferred Compounding is a rubber compounder serving markets that include automotive, power and infrastructure. The US company generated sales in 2018 of around USD 240m and has over 500 employees in six facilities (five in the US and one in Mexico).

The transaction price is approximately USD 232m, and the business has been consolidated since 1 July 2019. Hexpol says possible restructuring and cost synergies would be evaluated and communicated at a later stage.

About the buy, Hexpol says it brings it a step towards securing global capacity and competence in polymer compounds. Following Hexpol's acquisitions of Mesgo and Kirkhill Rubber in 2018 – see Plasteurope.com of 05.10.2018 and 20.09.2018 – the takeover of Preferred Compounding strengthens the Swedish compounder's offering of high-performance elastomers. On releasing Hexpol's fiscal 2018 results, CEO Mikael Fryklund had indicated the company's acquisition strategy would continue – see Plasteurope.com of 10.04.2019.