Sweden’s Hexpol has boosted its rubber compounding business after buying companies in the Czech Republic and USA.

In the first transaction, Hexpol paid around €65 million to acquire Trelleborg Material & Mixing Lesina from Sweden’s Trelleborg Group. The Czech business, which employs about 125 people and operates a plant in Lesina, recorded a turnover of €40 million in 2016. “The acquisition is a very good complement to Hexpol Compounding in Europe and broadens and strengthens our presence with rubber compounds in the central European market,” commented Ralph Wolkener and Carsten Rüter, joint presidents of Hexpol Compounding Europe.

In a second deal, Hexpol has signed an agreement to buy Valley Processing, a custom rubber compound supplier based in City of Industry, California, USA, for $44 million. The deal does not include Valley Processing’s plant in Virginia, but a further (undisclosed) sum based on product transfers will be paid after the deal closes, which is expected sometime during April.  Valley Processing has a manufacturing facility in City of Industry and had a turnover of $34 million last year. The company has around 90 employees.

Tracy Garrison, president and CEO Hexpol Compounding NAFTA, said: “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”