BARBERTON, Ohio, Dec. 8, 2010 /PRNewswire/ -- Preferred Compounding is emerging from the recent recession with expanded capabilities, industry-leading quality, stronger management and customer support resources—and now new owners who want to build on that progress.
In a transaction between private equity firms, Wingate Partners of Dallas, Texas, and Preferred's management have acquired ownership of Preferred Compounding Corp. from The Watermill Group of Lexington, Mass., effective December 6.
"Our intention for 2011 and beyond is to continue to grow by expanding the capabilities and services we provide our customers," said Preferred Compounding President and CEO Kenneth L. Bloom. "Wingate is intimately familiar with what it takes for a company like Preferred Compounding to be successful and fully supports our current management team, operational footprint, and strategic direction."
Bloom said that the company has spent the last half-decade improving capabilities, quality and people. In April, the company signaled its enhanced position by renaming from Preferred Rubber to Preferred Compounding and introducing a new logo and the tagline, "Preferred performs. You achieve."
"Preferred is a well-managed company with a strong commitment to servicing customers that goes beyond simply making high-quality compounds," said Wingate Managing Partner James A. Johnson. "We expect that their proven ability to deliver added value with every shipment will continue to earn new and loyal customers."
Wingate buys controlling interest in mid-market manufacturing, distribution and service businesses that are well managed in industries undergoing change. Preferred Compounding fits this description, Johnson said.
Bloom expressed appreciation for the contributions of outgoing owner, The Watermill Group. After eight and a half years of ownership, Wingate's offer enabled them to achieve their investment objectives for Preferred Compounding, he said.
Preferred Compounding (www.preferredperforms.com) supplies proprietary and custom mixed rubber compounds to molders, extruders, mixers and others in the rubber goods market. Primary industries served are automotive, construction, power generation and roll goods. Plants are in Tallapoosa, Georgia, Huntingdon, Tennessee, Fruithurst, Alabama and Barberton, Ohio, which is also company headquarters.
Wingate Partners (www.wingatepartners.com) was founded in 1987 to purchase controlling equity interests in manufacturing, distribution and service businesses, typically with revenues between $50 million and $250 million. Led by principals with significant consulting and operating experience, Wingate's strategy is to create value by actively supporting management in substantially improving operating performance.
SOURCE Preferred Compounding