In a move set to bolster its market presence, HEXPOL has agreed to acquire an 80% stake in Kabkom Kimya Sanayi ve Ticaret Anonim Şirketi (Kabkom) from its founding partners, Mr. Erdem Eker, Mr. Özgür İpek, and Mr. Bekir Güler. This transaction underscores HEXPOL’s commitment to growth and innovation in both domestic and international markets.
Expansion into the Cable Compound Sector
Founded in 2011, Kabkom has emerged as Turkey’s largest independent cable compounder. The company specializes in high-performance thermoplastic and thermoset cable compounds designed for the rapidly growing cable market. Operating from a modern, state-of-the-art facility outside Izmir, Kabkom currently employs 70 professionals and boasts a turnover of approximately 30 million euros, with profitability surpassing that of the broader HEXPOL Group. This acquisition allows HEXPOL to tap into Kabkom’s strong market presence and extensive product portfolio in key segments, such as high heat and flame retardant (HFFR) formulations and cross-linked compounds.
Strategic Synergies and Vision for Innovation
Executives from both companies have expressed enthusiasm about the merger, emphasizing the shared ambition to drive innovation and future growth. Mr. Erdem Eker, Mr. Özgür İpek, and Mr. Bekir Güler stated,
“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 robust product portfolio and financial strength, this partnership will drive further expansion both in Turkey and internationally.”
Ralph Wolkener and Carsten Rüter, Presidents of HEXPOL Compounding Europe & Asia, added,
“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.”
Klas Dahlberg, President and CEO of HEXPOL Group, further commented on the strategic value of this move:
“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.”
Financial Details and Future Prospects
The acquisition is valued at 54 million euros on a cash and debt-free basis and will be funded through a combination of bank facilities and cash reserves. The closing of the deal is expected to proceed following the necessary regulatory approvals. Additionally, HEXPOL has the option to acquire the remaining shares, and the founders are granted the option to sell their residual stake, ensuring flexibility for both parties as they move forward.
HEXPOL’s Rich History and Global Expansion
HEXPOL’s journey began in 1893 when Carl and Willhelm Gislow founded the company. Originally rooted in the rubber industry in the United States, the Gislow brothers later returned to Sweden, setting the foundation for what would become a global leader in polymer compounds and manufacturing. Over the decades, HEXPOL has expanded its portfolio through strategic acquisitions, including integrating companies such as Laxa, Elastomeric, GFD Technology, and multiple key players in North America and Europe. Today, HEXPOL’s operations contribute significantly to a global turnover nearing 4 billion dollars, underscoring its standing as a major player in the polymer and compound processing industry.
