Hexpol AB (Malmö, Sweden; www.hexpol.com) announced the acquisition of the business of U.S.-based rubber compounder Kirkhill Rubber (Downey, Calif.), an industry leader with experience in aerospace, automotive, medical and other demanding industry segments. Recently, Kirkhill expanded its operations into silicone and perfluoroelastomer compounds. Kirkhill Rubber has an annual sales of about $46 million.
Kirkhill Rubber’s recently acquired state of the art facility in Long Beach, California will be the sole manufacturing plant of Kirkhill. The production in Downey, California will be transferred to Long Beach and the production in Athens, Georgia will be transferred to other Hexpol sites in the U.S. Thereby the facilities in Downey and Athens are not included in the transaction.
“This acquisition is a very good complement to HEXPOL Compounding in the US and broadens and strengthens our presence with Rubber Compounds by highly skilled people and advanced processes. Kirkhill’s recent purchase of the facility located in Long Beach, California further increases our ability to provide superior products and unparalleled service for our customers,” Tracy Garrison, President HEXPOL Compounding NAFTA
Edward Reker, Kirkhill’s President, who will continue with HEXPOL, remarks, “We will see an immediate benefit by access to HEXPOL’s global material reach, expanded development resources and advanced quality systems. This will translate into exceptional service and even enhanced products to our customers very quickly.,” Edward Reker, President Kirkhill Rubber Company
“This is a further step in expanding and strengthening the HEXPOL Group with an acquisition within our core business. Kirkhill Rubber with its competence, customer relations and capabilities will fit nicely into the HEXPOL Group,” Mikael Fryklund CEO HEXPOL Group
The acquisition price amounts to approximately $49 million on a cash and debt free basis and is funded by a combination of cash and existing bank facilities. The business will be consolidated from September 2018. A smaller performance based consideration will be paid later if certain criteria are met.