Hexpol

HEXPOL has signed an agreement to acquire 80 percent of the shares in Kabkom Kimya Sanayi ve Ticaret Anonim Şirketi (Kabkom) from the founders Mr. Erdem Eker, Mr. Özgür İpek and Mr. Bekir Güler.

Kabkom was founded in 2011 and has grown to become the largest independent cable compounder in Turkey. The company specializes in high-performance thermoplastic and thermoset cable compounds for the fast growing cable market and serves a wide selection of international and domestic customers. Kabkom operates a brand new state of the art manufacturing facility outside Izmir, Turkey with 70 employees and plenty of open capacity. The company has a turnover of some 30 MEUR and a profitability above the HEXPOL Group.

"We see the merger with HEXPOL as an excellent fit between two successful companies, driven by a shared ambition for innovation and future growth. Kabkom brings an extensive portfolio of cable compounds in HFFR and cross-linked segments, along with a strong market presence in Türkiye. Combined with HEXPOL's strong product portfolio and financial strength, this partnership will drive further expansion both in Turkey and internationally"

                    Mr. Erdem Eker, Mr. Özgür İpek and Mr. Bekir Güler

"We are thrilled to welcome Kabkom as part of HEXPOL. This acquisition underscores our dedication to expanding our footprint in key global markets and leveraging synergies to drive innovation and growth. We look forward to working closely with Kabkom's talented team to bring even greater value to our customers"

              Ralph Wolkener and Carsten Rüter, Presidents HEXPOL Compounding Europe & Asia

"With this acquisition we broaden the capabilities of the HEXPOL Group in the fast growing wire and cable market. We look forward to continuing the successful journey of Kabkom together with the founders and we welcome them to the HEXPOL family"

                       Klas Dahlberg, President and CEO, HEXPOL Group

The acquisition price amounts to 54 MEUR on a cash and debt free basis and is funded by a combination of bank facilities and cash. The closing will take place after regulatory approvals. HEXPOL has an option to acquire the remaining shares, and the founders have an option to sell their remaining shares to HEXPOL.