Hexpol acquires US rubber compounder Portage Precision Polymers

Swedish firm Hexpol has acquired the US-based rubber compounderPortage Precision Polymers Inc from the founder Doug Hartley and his family in a deal worth about $ 13.2 million on a cash and debt free basis. The business will be consolidated from December 2014. Portage Precision Polymers, established by Doug Hartley in 2002, is today a well-known rubber compounder in the US market.
 
Tracy Garrison, President and CEO Hexpol Compounding NAFTA, said, “The acquisition is a very good complement to Hexpol Compounding in the US and broadens and strengthens our presence in rubber compounding. Portage Precision expands our capabilities and capacities to serve our customers in a more efficient way. Portage Precision has also a silicon rubber mixing unit in Mogadore, Ohia, which complements and expands our existing product portfolio."
 
Portage Precision Polymers, with two manufacturing facilities in Ohio (Ravenna and Mogadore), US, had a turnover of $ 29 million in 2013. The Ravenna facility is not included in the transaction and its business will be transferred to other Hexpol facilities.
The acquired business has an EBITDA margin below the Hexpol Group and 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. Portage Precision Polymer product portfolio and customer base will fit nicely into the Hexpol Group,” commented Georg Brunstam, CEO,Hexpol Group.