Tameside rubber business acquired by Swedish multinational for £25m

Rubber compounder Berwin Group has been snapped up by Swedish firm HEXPOL AB in a deal worth £25m.

Berwin, which manufactures compounds used in tyres, door and engine seals and products such as hoses for the aerospace, automotive and oil and gas industries, is now part of the Malmö-headquartered multinational polymers group.

Company chairman Glyn Williams, who helped lead a management buyout deal at Berwin in 1983 and is one of the firm’s main shareholders along with his family, will exit the business as part of the transaction.

Glyn said of the sale: “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.”

Based in the Dukinfield area of Tameside in Greater Manchester, Berwin was established more than 60 years ago and today employs over 200 people across its Greater Manchester base and another site in Lydney, Gloucestershire. The company turns over around £40m annually.

The Corporate Finance arm of advisory firm Dow Schofield Watts and Manchester law firm TLT Solicitors advised Berwin’s shareholders during the sale.

The team from Dow Schofield Watts was led by James Dow, Victoria Edwards and Philip Price.

Philip commented: “We are delighted to have helped Glyn and the other shareholders complete their journey from MBO to exit to an international purchaser with ambitions for the company’s future.”

Andrew Needham of TLT Solicitors, who advised Berwin on the transaction, has worked alongside the company’s shareholders for more than 30 years.

Dow Schofield Watts’ James Dow added: “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.”

Discussing the deal, the presidents of HEXPOL Compounding Europe, Ralph Wolkener and Carsten Rüter, hailed the acquisition as a “very good complement” to the group’s European operations.

They continued: “[Berwin] broadens and strengthens our presence with rubber compounds in the UK market.

“Berwin expands our capabilities and capacities to serve our customers in a more efficient way.”

The acquisition was funded by a mix of cash and HEXPOL’s existing banking facilities.

HEXPOL Group CEO Georg Brunstam commented: “This is a further step in expanding and strengthening the HEXPOL Group with a further acquisition within our core business.

“Berwin, with its competence and capabilities, will fit nicely into the HEXPOL Group and gives us a stronger UK presence.”

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