Hexpol buys compounding firm Kardoes Rubber
Hexpol has agreed to acquire well known US rubber compounding firm Kardoes Rubber Co. from company founder Frank Kardoes and his family for US$31.8 million. According to Hexpol, the acquisition price will be paid 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 at the end of July. The business is expected to be consolidated from August 2014. The latest purchase is part of an apparent growth by acquisition strategy, which also saw the compound acquire Robbins LLC at the end of 2012.
“The acquisition is a very good complement to Hexpol Compounding in the US and broadens and strengthens our presence with Rubber Compounds into end user markets like industrial materials handling, agriculture equipment and off the road tyres. Kardoes Rubber expands our capabilities and capacities to serve our customers in a more efficient way,” Tracy Garrison, President and CEO Hexpol Compounding NAFTA commented.
Kardoes Rubber, with a manufacturing facility in LaFayette, Alabama, US, had a turnover of US$43 million in 2013 and has around 90 employees. According to the new owners, the acquired business has an EBITDA margin below the Hexpol Group, but is expected to give a minor positive impact on earnings per share from start.
“This is a further step in expanding and strengthening the Hexpol Group with a further acquisition within our core business. Kardoes Rubber, with its competence and capabilities, will fit nicely into the Hexpol Group,” Georg Brunstam, CEO Hexpol Group explained.
Frank Kardoes started Kardoes Rubber in 1988.