M&As: Hexpol acquires majority share in Turkish cable compounder for EUR54 mn; BASF sells Brazilian decorative paints biz to Sherwin-Williams for US$1 bn

Swedish polymer firm Hexpol says it has signed an agreement to acquire 80% of the shares in Kabkom Kimya Sanayi ve Ticaret Anonim Şirketi (Kabkom) from the founders Erdem Eker, Özgür İpek and Bekir Güler. The acquisition price amounts to EUR54 million 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 adds it has an option to acquire the remaining 20% shareholding, and the founders have an option to sell their remaining shares to Hexpol.

Kabkom was founded in 2011 and has grown to become the largest independent cable compounder in Turkey. The company specialises 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 new manufacturing facility outside Izmir, Turkey with 70 employees and plenty of open capacity. The company has a turnover of some EUR30 million and a profitability above the Hexpol Group.

"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,” said Ralph Wolkener and Carsten Rüter, Presidents Hexpol Compounding Europe & Asia, adding that the firm expects to move forward in the fast growing wire and cable market.

In other news, in line with its strategy to downsize its coatings activities, which include automotive OEM coatings, refinish coatings and surface treatment, German chemical firm BASF is selling its Brazilian decorative paints business, which is part of BASF’s Coatings division, to US-based coatings firm Sherwin-Williams. The purchase price on a cash and debt-free basis is US$1.15 billion.

The transaction is structured as a share deal and includes the production sites in Demarchi and Jaboatão, related contracts, the Suvinil and Glasu! brands, and the around 1,000 employees.

The divestiture is expected to close in the second half of 2025, subject to the approval of the relevant competition authorities.

The decorative paints business, which generated sales of approximately US$525 million in 2024, is BASF’s only sizeable B2C business and has a wide portfolio of paints and paint preparation products as well as digital solutions. The business operates almost exclusively in Brazil and has limited synergies with other coatings businesses within BASF.

“For more than 60 years, Suvinil has been synonymous with innovation and quality. The business is highly complementary to Sherwin-Williams in Latin America, as the Suvinil brand is well-known and highly-trusted by purchasing influencers and specifiers across the value chain. We are excited to capitalise on the strengths of both companies to further enhance value for customers,” said Heidi G. Petz, Sherwin-Williams Chair, President/CEO.

BASF and Sherwin-Williams will continue to operate as strictly independent companies until the completion of the transaction. Business continuity for customers will be ensured throughout the transaction process. In accordance with legal requirements and local practice, employee representatives of the decorative paints business will be involved.

BASF adds that in the second quarter of 2025, it intends to approach the market to further explore strategic options for its remaining coatings activities.

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