MALMO, Sweden—Hexpol A.B. acquired two compounding operations in Europe and U.S. within just three days.
In the Czech Republic, Hexpol acquired 100 percent of Trelleborg Material & Mixing Lesina s.r.o from rival Swedish rubber group Trelleborg A.B. The $69 million acquisition will complement Hexpol's compounding activities in central Europe and was consolidated into the business March 31, according to Hexpol.
With a manufacturing facility in Lesina, the Czech operation had a turnover of $42.6 million in 2016 and has around 125 employees.
The acquired company's main end-user markets are within the automotive industry, general industry, and building and construction sectors.
"This is a further step in expanding and strengthening the Hexpol Group with a further acquisition within our core business," Hexpol Group CEO Georg Brunstam said.
In its statement on the transaction, Trelleborg said the operation's majority sales were to external customers. This, it said, did not make the business "sustainable" in the long term.
Additionally, Hexpol said April 3 that it had signed an agreement to acquire parts of U.S.-based Valley Processing, a family-owned business. The $44 million agreement includes Valley Processing's manufacturing facility in City of Industry, Calif., which had a turnover of $34 million in 2016.
Valley Processing's manufacturing facility in Virginia is not included in the transaction.
The acquisition is expected to be completed in April and is subject to "certain conditions," Hexpol 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," said Tracy Garrison, president and CEO Hexpol Compounding NAFTA.