Stockholm – Hexpol Group has announced the €232-million (€206 million) acquisition of Preferred Compounding from US private equity firm Audax Group.
With 2018 sales of around $240 million and 540 employees, Preferred Compounding operates six facilities, five in the US and one in Mexico.
The Copley, Ohio-based company is “a profitable rubber compounder in [North American markets including] general industry, automotive, power and infrastructure,” Hexpol said 1 July.
The acquired business, the Swedish group added, “has an EBITDA margin well below the Hexpol Group and is expected to have a positive impact on earnings per share.
“Integration will start immediately, and possible restructuring and cost synergies will be evaluated and communicated separately at a later stage.”
Hexpol described the acquisition as a strategic move to secure global capacity and competence in advanced polymer compounds, as well as new supply-chain, R&D and engineering capabilities.
The deal, it added, further advances Hexpol’s position in the high performance elastomers sector, following the group’s acquisitions of Mesgo Group and Kirkhill Rubber.
“This acquisition will strengthen our global positions in advanced polymer compounds,” said Mikael Fryklund, president and CEO, Hexpol Group
Audax purchased Preferred Compounding in early 2016, with the compounder subsequently acquiring Trostel Ltd in 2016 and the assets of Valley Rubber Mixing in January.