Hexpol buys Excel Polymers

ERJ staff report (DS)

Malmö, Sweden -- Hexpol AB is to buy global rubber compounding group Excel Polymers LLC for a cash price of around $212.5 million (euro.153.5 million).

Hexpol said, "Excel Polymers has an extensive breadth of rubber compounding capabilities and the global production footprint consists of eight manufacturing facilities strategically located in the US, China, Mexico and United Kingdom."

The company offers formulations and products to a diversified group of end markets including general industrial, contruction, automotive, printing, heavy machinery, oil&gas and consumer.

Excel Polymers is headquartered in Solon, Ohio, USA and employs approximately 800 people in the US, Mexico, UK and China. In 2009, sales amounted to $284 million and EBITDA to $21 million.Excel Polymers is expected to report sales of approximately $350-360 million and EBITDA of approximately $34-35 million in 2010.

With the transaction Hexpol will be the leading global rubber compounding group with expertise and manufacturing presence in 9 countries with 24 manufacturing entities.

"With the acquisition of Excel Polymers we are improving our capabilities and manufacturing footprint in order to service our customers on global reach. Our customers will experience the combination of global reach and local personalised service as we reinforce our theme "think globally, act locally". We are excited about the enhanced technology resources, capabilities and competences." says Hexpol CEO Georg Brunstam.

Completion of the transaction is subject to regulatory approvals and other customary conditions. Under the terms of the agreement, Hexpol will pay a cash purchase price of $212.5 million for Excel Polymers on a cash and debt free basis.

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Press release from Hexpol