An affiliate of Los Angeles-based private equity firm Aurora Capital Group has reorganised and acquired a majority ownership position in Lexington Precision.

Lexington manufactures tight-tolerance rubber components for use in medical, automotive and industrial applications.

Medical products include injection sites for intravenous feeding systems, plunger tips for syringes and seals for minimally-invasive surgical instruments. Automotive products include seals for wiring systems and insulators for original equipment and aftermarket ignition wire sets.

Steve Martinez, managing director of Aurora Resurgence, says: "We are pleased to partner with Lexington's management team to capitalise on the company's exceptional engineering, manufacturing and materials-formulation capabilities."

Michael Lubin, chief executive officer of Lexington, adds: "For many years, Lexington has been a company with great competitive strengths, but with an overly burdensome level of debt. The Aurora team recognized this and helped the company utilise the reorganisation process to create a strong balance sheet and substantial liquidity. We are now looking forward to working with Aurora to expand our business as we progress forward."

Lexington emerged from Chapter 11 of the United States Bankruptcy Code on 30 July 2010. As part of Lexington's reorganisation effort, Aurora purchased public debt of the company and then converted those securities into equity. Aurora also made a direct cash investment in Lexington to help fund the company's reorganisation plan. Aurora is now the majority owner of the newly reorganised company.