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October 09, 2018 02:00 AM

Hexpol adds to West Coast presence with Kirkhill deal

Chris Sweeney
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    Kirkhill Rubber President Ed Reker (left) with Tracy Garrison, president of Hexpol Compounding NAFTA, at the firm's site in Long Beach, Calif.

    LONG BEACH, Calif.—Hexpol A.B. continues to grow the reach of its custom mixing operations, this time enhancing its presence on the West Coast.

    The firm has agreed to pay $49 million to acquire Kirkhill Rubber Co., a Long Beach-based custom rubber compounder that operates within the aerospace, automotive, medical and other demanding industry segments.

    Hexpol said Kirkhill reported annual sales of about $46 million and has recently expanded into silicone and perfluoroelastomer compounding.

    "The Kirkhill acquisition is an excellent complement to our group," Tracy Garrison, president of Hexpol Compounding NAFTA, said in an email. "This deal further broadens and strengthens our West Coast presence with state-of-the-art organic and silicone rubber compounding. Kirkhill also complements and enhances our Valley Processing campus' capability in calendering and pre-forming services into various end user markets."

    Kirkhill operates three facilities—in Long Beach and Downey, Calif., and Athens, Ga. Hexpol said the Long Beach site, which Kirkhill recently acquired, will be its sole plant going forward. Hexpol will transfer production from the Downey plant to Long Beach and the capacity in Athens will be transferred to other Hexpol sites in the U.S.

    Hexpol said the Downey and Athens sites are not included in the transaction. The firm would not provide further details about the employees at both affected plants.

    Garrison, however, said that the deal will bring in many new, experienced, long-term rubber employees into the group and that Kirkhill will give Hexpol a strategic location on the West Coast.

    "The West Coast is the hub for aerospace and semiconductor manufacturing," Garrison said. "This deal will allow us to expand our silicone presence in the region. Additionally, the resources from Kirkhill along with Valley Processing will allow our West Coast campuses faster response time, technical support and overall improved service."

    Kirkhill President Ed Reker, who will transfer to Hexpol in the deal, said in an email that his company had been growing rapidly and was in the market to find the right partner to allow Kirkhill to reach the next level. He added that its portfolio will enhance Hexpol's offerings.

    "We will see an immediate benefit by access to Hexpol's global material reach, expanded development resources and advanced quality systems," he said. "This will translate into exceptional service and enhanced products to our customers very quickly."

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