Blue Point Capital Partners Exits Quality Synthetic Rubber
CLEVELAND (July 26, 2012) – Blue Point Capital Partners announced today that the firm has sold its interest in Quality Synthetic Rubber, Inc. (QSR) to Lexington Precision Corporation, a portfolio company of Industrial Growth Partners. Blue Point invested in QSR from its 2006 vintage fund, Blue Point Capital Partners II, L.P. – a $400 million lower middle-market buyout fund. Sale terms were not disclosed.
QSR, headquartered in Twinsburg, OH, has operations in North America and China and is a leading manufacturer of highly engineered, molded silicone components serving the medical, automotive, heavy transportation and industrial markets. The Company’s primary product line includes precision silicone seals that are integrated into automotive and industrial electrical connector assemblies and high precision silicone medical components such as vessel loops, IV components, catheters, and surgical and sterilization modules. QSR has demonstrated strong organic growth in the medical industry over the last several years and also increased its scale and capabilities through the strategic acquisition of Limtech, a medical molder in Sturtevant, WI. With the help of Blue Point’s China resources, QSR’s operation in Dongguan, China, has evolved from a startup operation in 2007 to a leading supplier of its core products in Asia.
Under the ownership of Blue Point, QSR’s revenue and EBITDA increased by more than 50 percent, China revenues grew four-fold, medical revenues increased five-fold and together the China and medical divisions now represent a large and rapidly growing portion of the overall business.
“We are extremely pleased with what we’ve been able to accomplish alongside the management team at QSR, driving significant growth and diversification while navigating an unprecedented downturn in 2009. We adopted a very clear value-creation plan at acquisition focused on diversifying the business beyond U.S. automotive via expansion of the medical segment and by benefiting from the rapid growth in the China market,” said John LeMay, a partner with Blue Point. “Execution of the strategy was driven by QSR’s exceptional management team together with Blue Point operating and China resources put in place to support the strategy.”
Randy Ross, chief executive officer of QSR, stated, “Blue Point was a true partner and provided very impactful operational and strategic support to the business. During our ownership by Blue Point, we have succeeded in building a global, market-leading electrical and medical components business serving diversified end markets. We have a fantastic team in place and a platform equipped for the next phase of growth.”
Blue Point Capital Partners (www.bluepointcapital.com) is an established private equity firm managing over $800 million in committed capital. Leveraging fully staffed offices in Charlotte, Cleveland, Seattle and Shanghai, Blue Point’s entrenched regional presence affords it the opportunity to establish relationships on a local and regional basis with entrepreneurs and their trusted advisors, while simultaneously providing the resources of a large, international firm. Blue Point has a 22-year track record of partnering with companies in the lower middle market where it can bring about accelerated growth and transformative change in partnership with its companies, their management teams and Blue Point’s network of operating resources. Blue Point is one of only a few middle-market private equity firms with a presence in the economies of both the United States and China, and the firm’s experience with cross-border management and value drivers has provided a distinct advantage for its portfolio businesses. Blue Point invests in manufacturing, distribution and service businesses generating $20 million to $200 million in revenue.
For more information, contact:
BLUE POINT CAPITAL PARTNERS
John LeMay
Partner
Blue Point Capital Partners, LLC
127 Public Square, Suite 5100
Cleveland, OH 44114
(216) 535-4707
QUALITY SYNTHETIC RUBBER
Randy Ross
Chief Executive Officer
Quality Synthetic Rubber, Inc.
1700 Highland Road
Twinsburg, OH 44087
(330) 425-8472
www.qsr-inc.com