HEXPOL

M&A Activity • Jun 3, 2016

Press release, Malmö, Sweden, June 3, 2016

HEXPOL acquires BERWIN Group, a well-known leading UK Rubber Compounder

HEXPOL has today acquired 100% of the Berwin Group Ltd from present shareholders (main shareholder Glyn Williams and his family). Berwin has more than 60 years' experience of rubber compounding and is today a leading Rubber Compounder in the UK market.

"The acquisition is a very good complement to HEXPOL Compounding in Europe and 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."

Ralph Wolkener/Carsten Rüter, President HEXPOL Compounding Europe

Berwin Group (Berwin Rubber Co Ltd, Berwin Industrial Polymers Ltd and Flexi-Cell (UK) Ltd), with manufacturing facilities in Manchester, UK and in Gloucestershire, UK has an estimated annual turnover of around 40 MGBP and has around 200 employees. The acquired business has an EBITDA margin below the HEXPOL Group but is expected to have a positive impact on earnings per share.

"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."

Georg Brunstam, CEO HEXPOL Group

The acquisition price is estimated to approximately 25 MGBP on a cash and debt free basis and has been funded by a combination of cash and existing bank facilities.

For further information, please contact:

Georg Brunstam President and CEO +46 (0)40 25 46 61

Karin Gunnarsson CFO/IR +46 (0)40 25 46 64

Ralph Wolkener/ Carsten Rüter President HEXPOL Compounding Europe +352-278053-1

HEXPOL is a world-leading polymers group with strong global positions in advanced polymer compounds (Compounding), gaskets for plate heat exchangers (Gaskets), and plastic and rubber materials for truck and castor wheel applications (Wheels).Customers are mainly system suppliers to players in the global automotive and engineering industries, construction sector, the energy, oil and gas sector, manufacturers of medical equipment as well as OEM manufacturers of plate heat exchangers and forklifts. The Group is organised in two business areas, HEXPOL Compounding and HEXPOL Engineered Products. The HEXPOL Group's sales in 2015 amounted to 11,229 MSEK. The HEXPOL Group has approximately 3,900 employees in eleven countries. Further information is available at www.hexpol.com.

This press release consists of such information that HEXPOL AB (publ) is obliged to disclose in accordance with the Swedish Securities Market Act and /or the Financial Instruments Trading Act. The information was submitted for publication on June 3, 2016 at 14.30.

This is a non-official translation of the Swedish original wording. In case of discrepancies between the English translation and dfsj and the Swedish original, the Swedish text shall prevail.