Hexpol acquires US thermoplastic elastomers compounder
Acquisition of Star Thermoplastics 'will facilitiate Swedish group's entry to the US TPEs market...'
Malmo, Sweden – Hexpol has acquired US thermoplastic elastomers (TPEs) compounder Star Thermoplastic Alloys and Rubbers Inc. (Star Thermoplastics) from founder Thomas Dieschbourg.
The $25-million (€23 million) purchase is in line with Hexpol's plans to establish a strong presence in the US TPEs market, said the Swedish compounder's 14 Nov announcement.
Founded in Broadview, Illinois in 1993, Star Thermoplastics has annual turnover of around $20 million with a 'profitability level below that of the Hexpol Group', the statement added.
The US company mainly supplies to end-customers in the automotive, building & construction, medical, industrial, electronics and consumer segments.
Star Thermoplastics currently employs 30 people at its manufacturing site near Chicago where, said Hexpol, there is “plenty of growth capacity” in the future.
Founder Dieschbourg will continue to lead the business as president, the Swedish group added.
"The acquisition of Star Thermoplastics is in line with our growth strategy,” commented acting CEO and chief financial officer Peter Rosen.
The move, he said, will enable entry to the US TPE market through “a well-established company with a strong product portfolio."
Hexpol, in return, will provide “enhanced capabilities and a better geographic reach” for Star Thermoplastics.
"Star Thermoplastics will enable us to replicate our successful European TPE growth journey on the larger American TPE market,” said Hexpol TPE Compounding presidents Ralph Wolkener and Carsten Rüter.
Furthermore, the group’s TPE companies in Europe and China, the Hexpol officials noted, will be stronger through the expanded footprint.