Hexpol AB, a Sweden-based world-leading polymers group with strong global positions in advanced polymer compounds, gaskets for plate heat exchangers, and plastic and rubber materials for truck and castor wheel applications, has acquired 100% of the Berwin Group Ltd from present shareholders, Glyn Williams and his family.
“We are delighted that Berwin, which has been independent since its formation in 1953, has been recognised by HEXPOL for its market leading products and technical capability along with its loyal and experienced workforce. By becoming a member of such a strong international group we believe Berwin will continue to thrive,” Williams said.
The acquisition price is estimated to approximately £25 million on a cash and debt free basis and has been funded by a combination of cash and existing bank facilities.
Ralph Wolkener/Carsten Rüter, President of HEXPOL Compounding Europe, said: “The acquisition is a very good complement to HEXPOL Compounding in Europe and broadens and strengthens our presence with Rubber Compounds in the UK market. Berwin expands our capabilities and capacities to serve our customers in a more efficient way.”
Berwin Group (Berwin Rubber Co Ltd, Berwin Industrial Polymers Ltd and Flexi-Cell (UK) Ltd), which was founded 60 years ago, has manufacturing facilities in Manchester and Gloucestershire, UK and has an estimated annual turnover of around £40 million and has around 200 employees. The acquired business has an EBITDA margin below the Hexpol Group but is expected to have a positive impact on earnings per share.
Georg Brunstam, CEO of the HEXPOL Group, added: “This is a further step in expanding and strengthening the HEXPOL Group with a further acquisition within our core business. Berwin, with its competence and capabilities, will fit nicely into the HEXPOL Group and gives us a stronger UK presence.”
Berwin’s compounds are used in leading tyre brands, in products such as door and engine seals and hoses within the automotive, aerospace and oil and gas industries, and in everyday goods ranging from mouse mats to footwear.