Dexine acquires Cheshire firm
Dexine Leyland Rubber Technology has acquired Elastomer Engineering in a seven-figure deal as part of its expansion programme.
The purchase sees the Leyland rubber manufacture obtain significant intellectual property, along with a wide range of specialist equipment.
Established in 1966, Lymme-based Elastomer makes high specification rubber mouldings in all commercially available rubbers and cast polyurethanes. The business specialises in rubber-to-metal bonding and the processing of advanced materials, which it supplies to industries including defence and oil & gas. Elastomer has a turnover of £1.5m and employs 18.
Leyland-based Dexine designs and manufactures complex elastomeric products and produces a range of rubber compounds, including products with oil and fire resistance properties, as well as vibration damping. The business supplies sectors such as defence, rail, industrial & chemical, oil and gas storage, and marine safety. With a £4m turnover, Dexine employs 32 staff.
The corporate and commercial team at law firm Harrison Drury advised Dexine on the deal. Dexine received lead financial advice from the corporate finance team at Preston-headquartered MHA Moore and Smalley.
The transaction will see Elastomer’s shareholders Christopher Gardner, John Gardner and Michael Gardner stepping back to pursue other interests, while James Gardner will continue in a consultancy role in the business post-transaction. Meanwhile Chris Turner, a shareholding director at Dexine, has taken over the helm as Elastomer’s new managing director.
This is a significant and ambitious transaction that will enable the enlarged business to expand and prosper
He said: “There are so many synergies between Dexine and Elastomer that both companies will benefit massively from this acquisition. We have acquired not only an extended product range available to all customers, but an enhanced capability with a range of specialised equipment unique in the industry. Customers will start to see immediate benefits.”
Jack Stephenson, solicitor in the corporate and commercial team at Harrison Drury, said: “This is a significant and ambitious transaction that will enable the enlarged business to expand and prosper in the highly specialised rubber technology sector. Dexine has a strong and capable management team and I am confident they will continue to drive further growth going forwards.”
Stephen Gregson, corporate finance director at MHA Moore and Smalley, commented: “We are really pleased to have been able to help Dexine carry out its successful acquisition of Elastomer. As Chris, points out, the two companies are a very strong fit commercially and the combined entity creates a true centre of excellence in polymer technology and its practical applications.”
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