Trelleborg expands in automotive sector
- becomes global leader in antivibration area
The Trelleborg Group has signed an agreement with Invensys of the UK to
acquire the British company's antivibration operations (AVS).
AVS has annual sales of approximately SEK 4.2 billion and slightly more
than 4,000 employees at 17 production units in 7 countries. The technical
center for AVS operations is situated in Höhr-Grenzhausen, Germany. The
acquisition will position Trelleborg as a global leader in antivibration
products for the automotive industry and in advanced industrial
applications, with annual sales of about SEK 6.6 billion in this market
The purchase price for the acquired activities amounts to about SEK 2,1
billion. Operating profit for the 12 months ending sept. 30 1999, before
items affecting comparability, was approx. SEK 250 M.
"The acquisition is in line with our strategy to expand Trelleborg's
industrial activities to focus on a number of selected customer segments
and to follow the timing plan established in the spring to reposition the
Group," says Fredrik Arp, President and CEO of Trelleborg AB.
Following the acquisition, annual sales by Trelleborg's Industry Sector
are expected to total about SEK 13 billion, with approximately 12,500
employees in 28 countries.
"The acquisition provides us with a first-class position based on
increased technical skills and a complete product range that will enable
us to support our customers with increasingly sophisticated product and
system solutions," says Hans Porat, Group Executive Vice President and
head of Trelleborg's Industry Sector.
The integration of AVS's activities with Trelleborg's operations is
expected to generate substantial synergies. Trelleborg believes the cost-
related synergies will be realized within a two-year period. A structural
program to cover integration costs will be booked in conjunction with the
acquisition. George Caplea, President of Trelleborg Automotive, will
manage the integration work.
Effects of the acquisition on Trelleborg Group earnings per share are
expected to yield favorable results already in year 2000.
The acquisition is expected to be finalized by March 1, 2000, pending
approval by competition authorities.
An information meeting regarding the acquisition will be held at Royal
Viking Hotel in Stockholm December 27, 09.00.
For further information, contact Senior Vice President, Corporate
Communications, Mikael Byström,
tel +46 708-55 21 69.
Please visit http://www.bit.se for further information
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