Dec 24 2014
HEXPOL has signed an agreement to acquire RheTech Thermoplastic Compounding from the founders’ families. RheTech has close to 50 years’ experience of polymer compounding and is a leading provider of polyolefin compounds, engineered resins and multifunctional colorant and additives.
"The acquisition expands HEXPOL Compounding NAFTA's capabilities and capacities within Polymer Compounding and is a very good complement to our present Polymer Compounding business.”
Tracy Garrison, President and CEO HEXPOL Compounding NAFTA
RheTech Thermoplastic Compounding have four facilities (including manufacturing and laboratories) located in Whitmore Lake, MI (RheTech), Fowlerville, MI (RheTech), Sandusky, OH (RheTech Color) and in Blacksburg, SC (RheTech Engineered Plastics). RheTech had a turnover of 117 MUSD in 2013 and has around 212 employees. The acquired business has an EBITDA margin well below the HEXPOL Group and is expected to have a positive impact on earnings per share from start.
"This is a further step in expanding and strengthening the HEXPOL Group with another acquisition within our core business. RheTech, with its competence and capabilities, will fit nicely into the HEXPOL Group and broadens our product range within Polymer Compounding."
Georg Brunstam, CEO HEXPOL Group
The acquisition price amounts to approximately 112 MUSD on a cash and debt free basis and is funded by a combination of cash and existing bank facilities. 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.
Source: http://www.hexpol.com/