Hexpol buys Berwin Group for £25 million
On Friday 3 June Swedish firm Hexpol bought 100 per cent of the Berwin Group Ltd shareholders Glyn Williams and his family for around £25 million. Berwin has more than 60 years’ experience of rubber compounding and is a leading Rubber Compounder in the UK market.
Berwin Group (which includes Berwin Rubber Co Ltd, Berwin Industrial Polymers Ltd and Flexi-Cell (UK) Ltd), runs manufacturing facilities in Manchester and in Gloucestershire, UK. The company reports an estimated annual turnover of around £40 million and has around 200 employees.
According to the firm’s new owners, the acquired business has an EBITDA margin below the Hexpol Group but is expected to have a positive impact on earnings per share. Indeed, owing to the fact that Hexpol’s first quarter 2016 operating margin was reported to be 18 per cent up from 16.8 per cent in the first quarter of 2015, it is not surprising that Berwin’s margin wasn’t as high.
The acquisition price of approximately £25 million will be financed on a cash and debt free basis and has been funded by a combination of cash and existing bank facilities.
According to Hexpol executives, “the acquisition is a very good complement to Hexpol Compounding in Europe and broadens and strengthens our presence with Rubber Compounds in the UK market. Berwin expands our capabilities and capacities to serve our customers in a more efficient way.”
“This is a further step in expanding and strengthening the HEXPOL Group with a further acquisition within our core business. Berwin, with its competence and capabilities, will fit nicely into the HEXPOL Group and gives us a stronger UK presence,” Georg Brunstam, CEO Hexpol Group commented.