Hexpol acquires Kirkhill Rubber
Hexpol announced the acquisition of Kirkhill Rubber from the founder Edward Reker, his family and co-owners. The acquisition price amounts to approximately USD 49 million on a cash and debt free basis.
Kirkhill is a US rubber compounder with experience in aerospace, automotive, medical and other industry segments. The company brings extensive knowledge in highly engineered elastomers and has a wide range of speciality equipment and complete laboratory testing facilities. Most recently, Kirkhill has expanded into the fields of silicone and perfluoroelastomer compounds. The company has an annual sales of about USD 46 million.
Its recently acquired state-of-the-art facility in Long Beach, CA, USA, will be the sole manufacturing plant of Kirkhill. The production in Downey, CA, USA, will be transferred to Long Beach and the production in Athens, GA, will be transferred to other Hexpol sites in the USA. Thereby the facilities in Downey and Athens are not included in the transaction.
“This acquisition is a very good complement to Hexpol Compounding in the US and broadens and strengthens our presence with Rubber Compounds by highly skilled people and advanced processes”, said Tracy Garrison, President Hexpol Compounding NAFTA. Edward Reker, Kirkhill’s President, who will continue with Hexpol, remarked: “We will see an immediate benefit by access to Hexpol’s global material reach, expanded development resources and advanced quality systems.” Mikael Fryklund, CEO of Hexpol Group, commented: “This is a further step in expanding and strengthening the Hexpol Group with an acquisition within our core business.”