Hexpol in €50m deal to acquire majority stake in Turkish compounder

Malmo, Sweden - Hexpol AB is acquiring an 80% stake in Turkish cable compounder Kabkom Kimya Sanayi ve Ticaret Anonim Sirketi (Kabkom) for €54 million.

Headquartered in Izmir, the company is “the largest independent cable compounder in Turkey,” according to an 18 Feb announcement from Hexpol.

Kabkom, it added, specialises in high-performance polymer compounds for the cables market and serves a broad number of local and international customers.

With an annual turnover of €30 million, the compounder operates a “brand new” facility outside Izmir, where it employs 70 people and has “plenty of open capacity.”

According to Kabkom owners, the compounder has “an extensive portfolio of cable compounds in HFFR and cross-linked segments, along with a strong market presence in Turkey.”

"With this acquisition, we broaden the capabilities of the Hexpol Group in the fast growing wire and cable market,” said Klas Dahlberg.

The transaction, which is subject to regulatory approvals, gives Hexpol an option to acquire the remaining shares of the company in the future.