Swedish compounder Hexpol has acquired Trelleborg’s Rubber Compounding unit in Czech Republic. It acquired 100% of Trelleborg Material & Mixing Lesina s.r.o from the Trelleborg Group.
“The acquisition is a very good complement to Hexpol Compounding in Europe and broadens and strengthens our presence with Rubber Compounds in the central European market. Trelleborg’s Rubber Compounding unit in Lesina, Czech Republic expands our capabilities and capacities to serve our customers in a more efficient way,” said Ralph Wolkener/Carsten Rüter, President Hexpol Compounding Europe
Trelleborg Material & Mixing Lesina s.r.o, with a manufacturing facility in Lesina, Czech Republic, had a turnover of EUR40 million in 2016 and has around 125 employees. The main end-user segments are within automotive industry, general industry, building and construction. The acquired business has an EBITDA margin below Hexpol and is expected to have a positive impact on earnings per share. “This is a further step in expanding and strengthening the group with a further acquisition within our core business. Trelleborg’s rubber compounding unit in Czech Republic, with its competence and capabilities, will fit nicely into the group and gives us a stronger presence in central Europe.” Georg Brunstam, CEO Hexpol Group.
The acquisition price is estimated to approximately EUR65 million on a cash and debt free basis and has been funded by a combination of cash and existing bank facilities. The business will be consolidated from the acquisition date.
Hexpol has also acquired Valley Processing, a US rubber compounder owned by Ted Ballou and his family. ”The acquisition is a very good complement to our Hexpol Compounding business. Valley Processing broadens our presence and strengthens our portfolio; particularly in the western and southeastern regions of the US while also strengthening our market position in several key areas.” Tracy Garrison, President/CEO Hexpol Compounding NAFTA.
Valley Processing, with a manufacturing facility in City of Industry, California, US, had a turnover of US$34 million in 2016 and has around 90 employees. Valley Processing’s manufacturing facility in Virginia is not included in the transaction.
The acquisition price amounts to approximately US$44 million on a cash and debt free basis for the business plus an additional purchase price based on product transfers, and is funded by a combination of cash and existing bank facilities. The acquisition price for the business will be paid upon completion of the acquisition, which is estimated to take place during April, subject to certain conditions. The additional purchase price based on product transfers will be paid later.
Hexpol Group is organised in two business areas: Hexpol Compounding and Hexpol Engineered Products with 42 production units. Its sales in 2016 amounted to SEK1 billion. It employs 4,100 people in 11 countries.