Hexpol acquires US thermoplastic compounder

London - Hexpol has signed an agreement to acquire RheTech Thermoplastic Compounding from the founders’ families. RheTech has nearly 50 years of experience in polymer compounding and is a provider of polyolefin compounds, engineered resins and multifunctional colorant and additives.

"The acquisition expands Hexpol Compounding NAFTA's capabilities and capacities within polymer compounding and is a very good complement to our present polymer compounding business,” said Tracy Garrison, president and CEO of Hexpol Compounding NAFTA in a statement in December 2014.

RheTech Thermoplastic Compounding have four facilities (including manufacturing and laboratories) located in Whitmore Lake, Michigan, (RheTech), Fowlerville, Michigan (RheTech), Sandusky, Ohio (RheTech Color) and in Blacksburg, South Carolina (RheTech Engineered Plastics). The company had a turnover of $117 million (€99.2 million) in 2013 and has around 212 employees.

According to Hexpol, the acquired business has an EBITDA margin well below the Hexpol Group and is expected to have a positive impact on earnings per share from start.

The takeover price was approximately $112 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 in the beginning of 2015 after regulatory approvals.