3rd June 2016
Dow Schofield Watts Corporate Finance has successfully advised the shareholders on the sale of Berwin Group to HEXPOL AB, a Swedish listed polymer compounding group. The Berwin shareholders were also advised by Andrew Needham, TLT solicitors, who has advised the shareholders for over 30 years.
With sites in Manchester and Gloucestershire, the Berwin Group is a leading UK rubber compounder. Berwin’s compounds are used in leading tyre brands, in products such as door and engine seals and hoses within the automotive, aerospace and oil and gas industries, and in everyday goods ranging from mouse mats to footwear. Founded over 60 years ago, the company employs over 200 staff at its headquarters in Dukinfield, Manchester and its site in Lydney, Gloucestershire. In 2015 it won a place in the International Track 200 as one of the private British companies with the fastest-growing international sales.
The sale provides an exit for Berwin’s Chairman and main shareholder Glyn Williams, who led a management buy-out in 1983. Glyn Williams said “We are delighted that Berwin, which has been independent since its formation in 1953, has been recognised by HEXPOL for its market leading products and technical capability along with its loyal and experienced workforce. By becoming a member of such a strong international group we believe Berwin will continue to thrive.”
HEXPOL Group’s sales in 2015 amounted to 11,229 MSEK (£938m) and operating profits were 1,964 MSEK (£164m). The HEXPOL Group has approximately 3,900 employees in eleven countries and traces its roots back to 1893. The acquisition of Berwin by HEXPOL was to create a stronger UK presence.
The acquisition price is estimated to be approximately £25m on a cash and debt free basis.
The sale of Berwin to Hexpol, adds another significant transaction to our chemicals credentials and reinforces our capability to reach international purchasers through our international network.