US-based lower mid-market firm Blue Point Capital Partners has sold its interest in Quality Synthetic Rubber (QSR) to Lexington Precision Corporation, a portfolio company of Industrial Growth Partners.
Blue Point invested in QSR through its $400m Blue Point Capital Partners II fund, which closed in 2006.
QSR has operations in North America and China and is a manufacturer of molded silicone components serving the medical, automotive, heavy transportation and industrial markets.
The company has increased its scale and capabilities through the strategic acquisition of medical molder Limtech.
With the help of Blue Point’s China resources, QSR’s operation in Dongguan, China, has evolved from a start-up operation in 2007 to a leading supplier of its core products in Asia, it said.
Under the ownership of Blue Point, QSR’s revenue and EBITDA increased by more than 50 per cent, 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,” said John LeMay, a partner at Blue Point.
“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.
“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.”
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