Hexpol buys UK rubber compounder Berwin

Manchester, UK –  Swedish group Hexpol AB has acquired Manchester-based compounder Berwin Group for £25 million (€32 million), the UK company announced 3 June.

The sale was led by company chairman Glyn Williams, who helped head up a management buy-out for Berwin in 1983. He, with his family, were the main shareholders in the company, originally founded in 1953.

Back in 2010, Berwin – then a £35-million turnover company – sold off its PVC compounding business as part of a strategy to focus on its rubber and silicone compounding operations.

Today, with over 200 people at UK sites in Dukinfield, Manchester and Lydney, Berwin has annual sales of around £40 million. Its compounds are used in tires, automotive seals and hoses and for applications in the aerospace, oil & gas, consumer goods and footwear industries.

The UK company joins Hexpol, a 3,900-employee group with 2015 sales of SEK11,229 million (€1,214 million), supplying polymer compounds, heat exchanger gaskets and plastics and rubber materials for truck and castor wheels.

Hexpol’s compounds go to the global automotive and engineering industries, construction sector, the energy, oil and gas sector and manufacturers of medical equipment.

Hexpol has recognised Berwin’s "market leading" products and technical capability along with its “loyal and experienced workforce”, said Williams, adding: “By becoming a member of such a strong international group we believe Berwin will continue to thrive.”

Georg Brunstam, CEO of the Swedish group, described the deal as a further step in expanding and strengthening Hexpol.

“Berwin, with its competence and capabilities, will fit nicely into the Hexpol Group and gives us a stronger UK presence," said Brunstam.

For Hexpol Compounding Europe, president Ralph Wolkener 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."