Hexpol acquires US retreading supplier Robbins
Swedish polymer group Hexpol has acquired US retreading industry supplier Robbins. The US$89.2 million deal covers the purchase of Robbins Holdings, Inc., including Robbins LLC.
US-based Robbins LLC is an established manufacturer of tyre retreading products and supplies moulded enveloped and curing tubes, particularly for truck, heavy equipment and aircraft tyre retreading. The company also specialises in the custom mixing of rubber compounds.
“The acquisition is a very good compliment to Hexpol Compounding and broadens our presence with rubber compounds into end user markets like agriculture, mining, oil and gas,” stated Hexpol Group CEO Georg Brunstam. “It also brings a global leadership in moulded envelopes and curing tubes to the tyre industry.”
Robbins has an estimated annual turnover of approximately $100 million and employs around 240 employees at its three US production facilities; Muscle Shoals, Alabama, Findlay, Ohio and Tallapoosa, Georgia. The acquired business has an EBITDA margin slightly lower than the Hexpol Group and is expected to have a positive impact on earnings per share from the start. The $89.2 million acquisition is on a debt free basis and funded by a combination of cash and existing bank loans. Integration and transaction cost of SEK 15-20 million (£1.4 – 1.9 million, $2.3 – 3.0 million) will be charged in the fourth quarter of 2012. Robbins will be consolidated from December 2012.