STOCKHOLM--(BUSINESS WIRE)--Regulatory News:
HEXPOL (STO:HPOLB) has signed an agreement to acquire the VIGAR Rubber Compounding business within Grupo Vigar from the founders’ families. Vigar Rubber Compounding has more than 50 years’ experience of rubber compounding and is today a well-known Rubber Compounder in the Spanish and German market.
"The acquisition is a very good complement to HEXPOL Compounding in Europe and broadens and strengthens our presence with Rubber Compounds into the Spanish and German markets. Vigar Rubber Compounding expands our capabilities and capacities to serve our customers in a more efficient way."
Ralph Wolkener/Carsten Rüter, President HEXPOL Compounding Europe
Vigar Rubber Compounding, with manufacturing facilities in Rubi, Spain and Viersen, Germany, had a turnover of 57 MEUR in 2013 and has 134 employees (Spain 88, Germany 46).The acquired business has a positive EBITDA margin well below the HEXPOL group and is expected to have an insignificant impact on earnings per share.
"This is a further step in expanding and strengthening the HEXPOL Group with a further acquisition within our core business. Vigar Rubber Compounding, with its competence and capabilities, will fit nicely into the HEXPOL Group and gives us a stronger European presence."
Georg Brunstam, CEO HEXPOL Group
The acquisition price is estimated to approximately 19 MEUR on a cash and debt free basis and is funded by a combination of cash and existing bank facilities. The acquisition price will be paid upon completion of the acquisition which is estimated to take place during the fourth quarter after regulatory approvals. Acquisition and integration costs are expected to be reported in Q4-2014.
HEXPOL is a world-leading polymers group with 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 organised 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 3,500 employees in ten countries. Further information is available at www.hexpol.com.
This press release consists of such information that HEXPOL AB (publ.) may be obliged to disclose in accordance with the Swedish Securities Market Act and/or the Financial Instruments Trading Act. The information was submitted for publication on October 8, 2014.
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