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HEXPOL acquires Valley Processing

HEXPOL acquires Valley Processing

HEXPOL acquired the business of the US-based rubber compounder Valley Processing, owned by Ted Ballou and his family, for $46 million.

The deal excludes Valley Processing’s manufacturing facility in Virginia.

Valley Processing, with a manufacturing facility in City of Industry, California, US, had a turnover of $34 million in 2016 and have around 90 employees.

”The acquisition is a very good complement to our HEXPOL Compounding business. 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

The acquired business has an EBITDA margin below the HEXPOL Group and is expected to have a positive impact on earnings per share, said HEXPOL.

“This is a further step in expanding and strengthening the HEXPOL Group with a further acquisition within our core business. Valley Processing, with its competence and capabilities, will fit nicely into the HEXPOL Group,” said Georg Brunstam, CEO HEXPOL Group


The acquisition price amounts to approximately 46 MUSD on a cash and debt free basis for the business plus an additional purchase price based on product transfers, and is funded by a combination of cash and existing bank facilities. The additional purchase price based on product transfers will be paid later. The business will be consolidated from April.

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