Hexpol acquires Vigar Rubber Compounding for Euro 19 mn

Swedish firm Hexpol has signed an agreement to acquire the Vigar Rubber Compounding business within Grupo Vigar from the founders’ families. The acquisition price is estimated to approximately Euro 19 million on a cash and debt free basis and is funded by a combination of cash and existing bank facilities. Vigar Rubber Compounding has more than 50 years’ experience of rubber compounding and is today a well-known rubber compounder in the Spanish and German market.
 
"The acquisition is a very good complement to Hexpol Compounding in Europe and broadens and strengthens our presence with rubber compounds into the Spanish and German markets. Vigar Rubber Compounding expands our capabilities and capacities to serve our customers in a more efficient way,” said Ralph Wolkener, President Hexpol Compounding Europe.
 
Vigar Rubber Compounding, with manufacturing facilities in Rubi (Spain) and Viersen (Germany), had a turnover of Euro 57 million in 2013 and has 134 employees. The acquired business has a positive EBITDA margin well below the Hexpol group and is expected to have an insignificant impact on earnings per share.
 
"This is a further step in expanding and strengthening the Hexpol Group with a further acquisition within our core business. Vigar Rubber Compounding, with its competence and capabilities, will fit nicely into the Hexpol Group and gives us a stronger European presence,” stated Georg Brunstam, CEO, Hexpol Group.
 
The acquisition price will be paid upon completion of the acquisition which is estimated to take place during the fourth quarter after regulatory approvals. Acquisition and integration costs are expected to be reported in Q4-2014.