Malmo, Sweden – Hexpol AB has announced the acquisition of two compounding operations in Europe and North America within just three days.
In the Czech Republic, Hexpol acquired 100% of Trelleborg Material & Mixing Lesina s.r.o from rival Swedish rubber group Trelleborg AB on 31 March.
The €65-million acquisition, said the company, will complement Hexpol’s compounding activities in central Europe and was consolidated into the business on 31 March.
With a manufacturing facility in Lesina, the Czech operation had a turnover of €40 million in 2016 and has around 125 employees.
The acquired company’s main end-user markets are within the automotive industry, general industry and building & construction sectors.
"This is a further step in expanding and strengthening the Hexpol Group with a further acquisition within our core business,” said Georg Brunstam, CEO Hexpol Group.
In its statement on the transaction, Trelleborg said the operation’s majority sales were to external customers. This, it said, did not make the business “sustainable” in the long term.
Additionally, Hexpol announced 3 April that it had signed an agreement to acquire parts of US-based Valley Processing, a family-owned business.
The $44-million agreement includes Valley Processing’s manufacturing facility in City of Industry, California, which had a turnover of $34 million in 2016.
Valley Processing’s manufacturing facility in Virginia is not included in the transaction.
The acquisition is expected to be completed in April subject to “certain conditions”, said Hexpol.
”Valley Processing broadens our presence and strengthens our portfolio; particularly in the western and southeastern regions of the United States while also strengthening our market position in several key areas,” said Tracy Garrison, president and CEO Hexpol Compounding NAFTA.