STOCKHOLM, Sweden--(BUSINESS WIRE) -- HEXPOL has signed an agreement to acquire the business of Kardoes Rubber Co. from the founder Mr. Frank Kardoes and his family. Frank Kardoes started Kardoes Rubber in 1988 and Kardoes is a well-known Rubber Compounder in the U.S. market.
"The acquisition is a very good complement to HEXPOL Compounding in the U.S. and broadens and strengthens our presence with Rubber Compounds into end user markets like industrial materials handling, agriculture equipment and off the road tires. Kardoes Rubber expands our capabilities and capacities to serve our customers in a more efficient way," says Tracy Garrison, president and CEO of HEXPOL Compounding NAFTA.
Kardoes Rubber, with a manufacturing facility in LaFayette, Alabama had a turnover of $43 million USD in 2013 and has around 90 employees.
The acquired business has an EBITDA margin below the HEXPOL Group and is expected to give a minor positive impact on earnings per share from start.
"This is a further step in expanding and strengthening the HEXPOL Group with a further acquisition within our core business. Kardoes Rubber, with its competence and capabilities, will fit nicely into the HEXPOL Group," added Georg Brunstam, CEO HEXPOL Group.
The acquisition price amounts to $31.8 million USD on a cash and debt free basis and is funded by a combination of cash and existing bank facilities. The acquisition price will be paid upon completion of the acquisition which is estimated to take place at the end of July. The business is expected to be consolidated from August 2014.