The transaction will be funded by a combination of cash on hand and existing bank facilities, Hexpol said.

Peter Rosén, acting CEO and CFO of Hexpol, commented: "The acquisition of Star Thermoplastics is in line with our growth strategy and will enable Hexpol to enter the American TPE market through a well-established company with a strong product portfolio."

"Hexpol 's addition of Star Thermoplastics to Hexpol TPE portfolio is a perfect fit. Hexpol will provide enhanced capabilities and a better geographic reach. The transaction will be beneficial both to the Star Thermoplastics employees and to Hexpol," said Dieschbourg

Ralph Wolkener and Carsten Rüter, presidents Hexpol TPE Compounding, added: "Star Thermoplastics will enable us to replicate our successful European TPE growth journey on the larger American TPE market. Both our existing TPE companies in Europe and China and Star Thermoplastics will be stronger through this expanded footprint."

Star Thermoplastics currently has a turnover of approximately $20 million with operations near Chicago, Illinois, USA has some 30 employees. The main end customer segments are automotive, building & construction, medical, industrial, electronics and consumer.