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Hexpol to acquire thermoplastic compound maker RheTech

30 Dec '14

2 min read

Swedish producer of advanced polymer compounds, Hexpol said it is in the process of acquiring RheTech Thermoplastic Compounding.

RheTech has a history going back by nearly 50 years in polymer compounding and is a leading provider of polyolefin compounds, engineered resins and multifunctional colorant and additives.

RheTech Thermoplastic Compounding has four facilities, which include manufacturing and laboratories.

RheTech reported a turnover of MUSD 117 in 2013 and has around 212 employees and has an EBITDA margin well below Hexpol and is expected to have a positive impact on earnings per share from start.

Hexpol has acquired RheTech at MUSD 112 MUSD on a cash and debt free basis and is funded by a combination of cash and existing bank facilities.

Hexpol said the acquisition price will be paid upon completion of the acquisition which is estimated to take place in the beginning of 2015 after regulatory approvals.

"This is a further step in expanding and strengthening the Hexpol Group with another acquisition within our core business,” Georg Brunstam, CEO at Hexpol Group said.

He added, “RheTech, with its competence and capabilities, will fit nicely into the Hexpol Group and broadens our product range within Polymer Compounding." (AR)

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