Hexpol: Shares rise after U.S. acquisition

Hexpol AB

02/07/2019 10:05

** Shares in engineering group Hexpol  HPOLb.ST  up nearly
4% in morning trade
    ** The company said late on Monday it had acquired Preferred
Compounding, an advanced rubber compounder in the United States,
for about $232 million  urn:newsml:reuters.com:*:nFWN2420OH
    ** "The bulls have been hoping for M&A announcements, which
gives support for a potential M&A valuation multiple for
Hexpol", says Kepler Cheuvreux analyst Douglas Lindahl
    ** The analyst says the positive reaction is a result of 
Hexpol's weak recent share performance and lack of positive
triggers 
    ** Lindahl sees the acquisition as positive in the short
term due to evidence of increased M&A activity, but mostly
neutral in the longer term
    ** Hexpol's shares are set for their highest since the end
of April 


 

 ((jagoda.darlak@tr.com))