Hexpol buys Star Thermoplastics to build its TPE base in US

With an eye toward the American thermoplastic elastomer market, Sweden-based Hexpol AB is adding Chicago-area TPE compounder Star Thermoplastic Alloys and Rubbers Inc. to the fold.

Hexpol purchased 100 percent of the shares of the 30-person company on Nov. 14  for about $26.5 million, on a cash and debt-free basis, from Thomas Dieschbourg, president of Star Thermoplastics.

Star Thermoplastics will be consolidated by Hexpol retroactive to Nov. 1 and continue under Hexpol Compounding Americas, specifically Hexpol TPE Americas.

"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," said Peter Rosen, Hexpol Group chief financial officer and acting CEO.

Hexpol said it will use a similar template in making inroads in the American TPE market as it did to drive success in the European TPE market.

"Star Thermoplastics will enable us to replicate our successful European TPE growth journey on the larger American TPE market," Ralph Wolkener and Carsten Ruter, presidents of TPE Compounding, said in a Nov. 14 statement. "Both our existing TPE companies in Europe and China and Star Thermoplastics will be stronger through this expanded footprint."

In recent years, Hexpol Compounding Americas has developed a decentralized and coordinated approach to supply chain and distribution, with the intent of being closer to customers.

Dieschbourg, who will remain president of Star Thermoplastics, said the company — with about $20 million in net sales annually — will leverage Hexpol's technology and geographic reach.

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

Dieschbourg founded Star Thermoplastics in 1993 and has developed the company into "a technically advanced TPE company," according to Hexpol.

Star Thermoplastics has "plenty of growth capacity," with customers in the automotive, building and construction, medical, industrial, electronics and consumer spaces.

Star Thermoplastics maintains about 90,000 square feet of compounding and research space in Broadview, Ill., comprising advanced manufacturing lines and five research laboratories.

The company also has warehousing in California.

The company's TPE grades can be injection molded, extruded and blow-molded.

As a group, Hexpol AB is divided into Hexpol Compounding — rubber, TPE and thermoplastic compounding along with Hexpol Compounding Americas, Europe and Asia — and Hexpol Engineered Products.

The company works in advanced polymer compounds, gaskets for plate heat exchangers and wheels made of polymer materials for truck and castor wheel applications.

Customers are primarily system suppliers to the global automotive, engineering, building and construction industries; and within the transportation, energy, consumer and cable and medical equipment spaces.

Hexpol Compounding Americas (within Hexpol Compounding) comprises about 55 percent of the group sales of the $3 billion Hexpol AB.

Hexpol is the largest custom rubber, TPE and specialty compounder in the world, according to the 2023 Rubber News custom mixing rankings.

Hexpol AB has about 5,000 employees.