STOCKHOLM—Hexpol A.B. has acquired the business of Portage Precision Polymers Inc. from founder Doug Hartley and his family.
The transaction was completed Dec. 1, and Hexpol said Portage will be integrated into its current operations by the end of January.
Hartley started the U.S. rubber compounding business in 2002 and operates facilities in Mogadore and Ravenna, Ohio, with a silicone rubber mixing unit in Mogadore.
Hexpol said it paid $13.2 million on a cash and debt free basis for Portage, which reported 2013 sales of $29 million.
Hexpol has spent about $68.7 million on three acquisitions in 2014.
The Ravenna facility is not included in the transaction, but Hexpol said its business will be transferred to other Hexpol facilities—mostly in Middlefield and Burton, Ohio.
The company said Hartley will remain with Hexpol Compounding while Portage's other employees are being offered positions at Hexpol. Portage employs about 60 at Ravenna and 10 at Mogadore.
“Our industry, as with many industries today, is having a difficult time with sustainability and investing funds back into the businesses for the overall long-term health, safety, and from an OSHA and EPA standpoint,” Hartley said in an email as to why he sold Portage Precision Polymers.
“Hexpol has already made that long-term financial commitment, and after almost 13 years in business, I felt Hexpol was the only company that could take the business to the next level. Hexpol will continue to make investments in their facilities that will continue to improve our industry overall.”
Hartley said the Ravenna facility was not included in the sale because of the building's age and the high cost needed to bring it into compliance.
“It does not make financial sense to continue operating the Ravenna plant,” he said. “Hexpol has adequate capacity in Northeast Ohio and other campuses throughout North America to absorb the business of P3 at these locations. As our customers approve our P3 recipes and compounds manufactured in our other Hexpol plants, I will then begin the process of shutting down the Ravenna site.”
Hartley said some of the employees in Ravenna will have job opportunities at Hexpol, either at its Middlefield or Burton facilities. Other openings are available to Portage's staff at other Hexpol facilities in North America, and the firm already has conducted a job fair at the Ravenna plant.
“There is tremendous interest in our employee base throughout the community, and I feel that everyone that is interested in still working will have no trouble finding good employment,” Hartley said.