HEXPOL acquires US rubber compounder

STOCKHOLM — Polymers group HEXPOL has acquired the business of Portage Precision Polymers Inc., a well-known rubber compounder in the US market, from the founder Doug Hartley and his family. 

Portage Precision Polymers, with two manufacturing facilities in Ravenna and Mogadore, Ohio, had a turnover of $29 million in 2013. The Ravenna facility is not included in the transaction and its business will be transferred to other HEXPOL facilities.

"The acquisition is a very good complement to HEXPOL Compounding in the US and broadens and strengthens our presence in rubber compounding. Portage Precision expands our capabilities and capacities to serve our customers in a more efficient way. Portage Precision has also a silicon rubber mixing unit in Mogadore, Ohio, which complements and expands our existing product portfolio," said Tracy Garrison, president and CEO HEXPOL Compounding NAFTA

The acquired business has an EBITDA margin below the HEXPOL Group and is expected to give a minor positive impact on earnings per share from start.

"This is a further step in expanding and strengthening the HEXPOL Group with a further acquisition within our core business. Portage Precision Polymer product portfolio and customer base will fit nicely into the HEXPOL Group,” said Group CEO Georg Brunstam.

The acquisition price amounts to approximately USD 13.2 million on a cash and debt free basis and was funded by a combination of cash and existing bank facilities. The business will be consolidated from December 2014.

HEXPOL(STO:HPOLB) has strong global positions in advanced rubber compounds (Compounding), gaskets for plate heat exchangers (Gasket)  and plastic and rubber materials for truck and castor wheel applications (Wheels). Customers are primarily OEM manufacturers of plate heat exchangers and trucks, systems suppliers to the global automotive and engineering industries, the energy sector and medical equipment manufacturers. The Group is organized in two business areas, HEXPOL Compounding and HEXPOL Engineered Products. The HEXPOL Group’s sales in 2013 amounted to 8,036 MSEK. The HEXPOL Group has approximately 3,700 employees in eleven countries.