Hexpol buys Valley Processing for $44 million
Just three days after buying Trelleborg’s Czech compounding operation, on 3 April Hexpol announced it has signed an agreement to acquire the business of Valley Processing from Ted Ballou and his family. The acquisition price amounts to approximately US$44 million on a cash and debt free basis. There will also be an additional product transfer fee, which will be paid later.
”The acquisition is a very good complement to our Hexpol Compounding business. Valley Processing broadens our presence and strengthens our portfolio; particularly in the western and southeastern regions of the United States while also strengthening our market position in several key areas”, Tracy Garrison, president and CEO Hexpol Compounding NAFTA commented.
Valley Processing runs a manufacturing facility in City of Industry, California, USA and reports a turnover of US$34 million for 2016. The firm, which has around 90 employees has not included its Virginia operation in the transaction. Therefore, Hexpol reports that the acquired business has an EBITDA margin below the Hexpol Group and is expected to have a positive impact on earnings per share.