Swedish compounder Hexpol (Malmö; www.hexpol.com) has boosted its rubber compounding business with the acquisition of two companies: one in the USA and the other in the Czech Republic.

In the first deal, Hexpol has bought Trelleborg Material & Mixing Lesina from Sweden’s Trelleborg Group (Trelleborg; www.trelleborg.com) for around EUR 65m on a cash and debt-free basis. The Czech business, which operates a plant in Lesina, had a turnover of EUR 40m in 2016 and employs about 125 people. “The acquisition is a very good complement to Hexpol Compounding in Europe and broadens and strengthens our presence with rubber compounds in the central European market,” commented Ralph Wolkener and Carsten Rüter, joint presidents of Hexpol Compounding Europe.

Three days later, Hexpol announced it had signed an agreement to buy the business of Valley Processing (City of Industry, California / USA; www.mrpvalleyprocessing.com), a custom rubber compound supplier, for USD 44m (EUR 41m). Valley Processing has a manufacturing facility in City of Industry and recorded a turnover of USD 34m in 2016. The company has around 90 employees. Hexpol said the deal does not include Valley’s plant in Virginia.

Commenting on the acquisition, Tracy Garrison, president and CEO Hexpol Compounding NAFTA, said: “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.”

In addition to the USD 44m purchase price, a further (undisclosed) sum based on product transfers will be paid after the deal closes, which is expected sometime during April.