Compounder Hexpol has bought US rubber compounder Portage Precision for US$13.2 million. The consolidation happened in December.
“The acquisition is a very good complement to Hexpol’s compounding in the US and broadens and strengthens our presence in rubber compounding. Portage Precision expands our capabilities and capacities to serve our customers in a more efficient way. Portage Precision has also a silicone rubber mixing unit in Mogadore, OH, which complements and expands our existing product portfolio,” President/CEO of NAFTA Tracy Garrison said.
Portage Precision Polymers owns two manufacturing facilities in Ohio – one in Ravenna and the other in Mogadore. The business was started in 2002 by Doug Hartley and had had a turnover of US$29 million in 2013. The Ravenna facility is not included in the transaction and its business will be transferred to other Hexpol facilities.
Hexpol also recently acquired the Vigar Rubber Compounding business within Grupo Vigar from the founders’ families. Vigar Rubber Compounding has more than 50 years’ experience of rubber compounding and is a well-known rubber compounder in the Spanish and German markets. Vigar Rubber Compounding, with manufacturing facilities in Rubi, Spain, and Viersen, Germany, had a turnover of EUR57 million in 2013 and has 134 employees (Spain 88, Germany 46).The acquired business has a positive EBITDA margin well below the Hexpol group and is expected to have an insignificant impact on earnings per share.
The acquisition proceeded on a cash and zero-debt basis and allows Hexpol to acquire some land and building in Spain.
In related news, Hexpol has completed its acquisition of rubber compounder Kardoes Rubber Co. The acquisition took place in August this year and cost Hexpol US$31.8 million. Kardoes was previously owned by Frank Kardoes and his family.
“The acquisition broadens and strengthens our presence with rubber compounds into end user markets like industrial materials handling, agriculture equipment and off the road tyres. Kardoes Rubber expands our capabilities and capacities to serve our customers in a more efficient way,” Garrison said.
Kardoes Rubber had a turnover of US$43 million in 2013 and hired 90 employees. It operates in LaFayette, Alabama.