Hexpol acquires US rubber compounder Kardoes

"The acquisition is a very good complement to Hexpol Compounding in the US and broadens and strengthens our presence with rubber compounds into end user markets like industrial materials handling, agriculture equipment and off the road tires. Kardoes Rubber expands our capabilities and capacities to serve our customers in a more efficient way." Tracy Garrison, President and CEO Hexpol Compounding NAFTA said. And Georg Brunstam, CEO Hexpol Group, comments: "This is a further step in expanding and strengthening the Hexpol Group with a further acquisition within our core business. Kardoes Rubber, with its competence and capabilities, will fit nicely into the Hexpol Group."

Kardoes Rubber employs ca. 90 people in its manufacturing facility in LaFayette, Alabama. The facility is ISO-9001-2008 approved and has a fully equipped QC/development lab. Annual micing capacity is said to around 200 million pounds.

The company had a turnover of USD 43 million in 2013. 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. Hexpol said that the acquisition price amounts to USD 31.8 million 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 at the end of July. The business is expected to be consolidated from August 2014.