On Dec. 15, UTEX Industries, a portfolio company of Audax Group, was acquired by Rhone Capital. Houston-based UTEX is a designer and manufacturer of highly-engineered specialty sealing solutions and downhole consumables used for oil and gas drilling, completion, and production, in addition to water management and mining. UTEX’s products are used in a variety of applications in high-growth markets such an unconventional natural gas and oil completion and deepwater drilling and production activities.

Michael Balas serves as president and CEO of UTEX; Pete Sanchez is CFO; and Mike Blake is vice president of business development.

Audax, together with management, acquired UTEX in May 2007 and executed a growth strategy focused on operational improvements, new product introductions, and the successful sourcing and integration of CAM Specialty products and DuraQuest, which broadened UTEX’s product lines and customer base.

Geoffrey S. Rehnert, co-CEO of Audax Group, said, “Mike Balas and his management team did a terrific job working with us to build the company. We drove above-market revenue growth by entry into new end markets and product launches, and expanded margins through pricing optimization and implementation of learn manufacturing initiatives. We wish Mike and his team continued success.”

Audax Group, founded in 1999, invests in small-cap and lower middle-market companies. With offices in Boston and New York, Audax manages in excess of $4.3 billion of equity, mezzanine debt, and senior loan capital.

Rhone, a private equity group with a current fund size of about $1 billion, was founded in 1996 and has offices in New York, London, and Paris. Rhode focuses on middle-market leveraged buyouts, recapitalizations, and partnership financings.

Lazard Middle Market LLC and Simmons & Company International advised UTEX in this transaction. Kirkland & Ellis LLP advised Audax Group.