STOCKHOLM—Hexpol A.B. has reached an agreement to acquire Vigar Rubber Compounding from Grupo Vigar.
Hexpol said it will pay $24 million on a cash and debt-free basis for the company. The acquisition is subject to the customary regulatory approvals and is expected to be completed by the fourth quarter. Acquisition and integration costs are expected to be reported at that time as well.
Vigar Rubber Compounding has more than 50 years of experience as a rubber compounder in the Spanish and German market. It employs 134 at its two manufacturing facilities, in Rubi, Spain, and Viersen, Germany. It reported sales of $72.23 million in 2013.
“This is a further step in expanding and strengthening the Hexpol Group with a further acquisition within our core business,” Hexpol CEO Georg Brunstam said. “Vigar Rubber Compounding, with its competence and capabilities, will fit nicely into the Hexpol Group and gives us a stronger European presence.”
Hexpol recently an agreement to acquire Kardoes Rubber Co. for $31.8 million on a cash and debt-free basis.
Hexpol is a worldwide polymers group that focuses on advanced rubber compounds, gaskets for plate heat exchangers, and plastic and rubber materials for truck and castor wheel applications. It is organized into two business areas: Hexpol Compounding and Hexpol Engineered Products. The group's 2013 sales were about $1.18 billion. It employs about 3,400 in 10 countries.