Hexpol Group has acquired an 80 percent stake in nylon compounder Piedmont Resin Supply L.L.C. in a deal valued at $86 million.
Hexpol of Malmo, Sweden, is buying the stake in Cartersville, Ga.-based Piedmont from owners Matt Griffith and Paul Daniel. Griffith founded Piedmont in 2013.
In a news release, officials said Piedmont is one of the largest independent nylon compounders in the U.S. They added the firm is an industry leader in technical nylon compounds in the U.S., serving customers in the automotive, transportation and furniture industries.
Piedmont employs 60 and has annual sales of $60 million. Griffith and Daniel said in the release that they see the deal as "the perfect fit between two successful companies with similar cultures and future ambitions."
Hexpol compounding president Jan Wikstrom added the acquisition "brings a portfolio of superior nylon compounds and strong market presence, which together with Hexpol's complimentary product portfolio and financial strength will enable further growth prospects."
The purchase price is being funded by a combination of bank facilities and cash. Hexpol has an option to acquire the remaining shares, and the founders have an option to sell their remaining shares to Hexpol.
The deal is Hexpol's third in the U.S. in 24 months. In late 2023, it bought Chicago-area thermoplastic elastomer compounder Star Thermoplastic Alloys and Rubbers Inc. for $26.5 million. Star employs 30 and has annual sales of about $20 million.
In late 2022, Hexpol acquired compounder McCann Plastics L.L.C. of North Canton, Ohio, for $120 million. McCann employs 100 and makes materials for rotational molding and other applications.
Hexpol now operates 21 sites in the U.S. with plastics, rubber and TPE compounding. The publicly traded firm posted sales of just over $2 billion in 2023.
