Swedish polymer compounder Hexpol to buy German thermoplastic elastomer supplier Horst Müller Kunststoffe for €39M excluding debt; German business has annual sales of about €46M
December 22, 2011
– HEXPOL AB (publ) has come to an agreement with the German Rowa Group to acquire Horst Müller Kunststoffe GmbH & Co. KG.
Müller Kunststoffe is a leading Central European developer and manufacturer of thermoplastic elastomer compounds (TPE Compounding) and has two production units in Lichtenfels, Germany.
"The acquisition constitutes yet another step in our ambition to broaden our product range within our Compounding business area" says Georg Brunstam, President and CEO of HEXPOL Group. "The market for TPE compounding is undergoing great growth with interesting and increasing customer applications within the field of medical, consumer, general industry and automotive. Müller Kunststoffe perfectly complements our European TPE compounding operations where we already have units in the UK and Sweden. We are also right now building a manufacturing plant in southern China for TPE compounding. Müller Kunststoffe is a well-established and well-managed company with strong management and a strong brand."
Müller Kunststoffe is expected to be consolidated during January 2012 after subject to regulatory approvals and other customary conditions and has an estimated annual turnover of approximately 46M EUR with around 90 employees. The acquired business has an EBITDA margin slightly lower than the HEXPOL Group but is expected to have a positive impact on earnings per share from the start. The acquisition price adjusted for acquired net debt amounts to 39M EUR and is funded by a combination of cash and existing bank loans.