Trelleborg acquisition of UK based Laird's automotive component
Trelleborg acquisition of UK based Laird's automotive component activites consolidates the Group's position as a world leader in the field of antivibration systems The Trelleborg Group has signed an agreement with Laird Group Plc to acquire the UK company's automotive components (LAC). LAC has annual sales of approximately SEK 2.8 billion, with slightly more than 3,000 employees at 16 production units in six countries, mainly in Europe. Through this acquisition, Trelleborg strengthens its position as a world leader in the field of antivibration products and systems for the automotive industry. The Group's range of noise-reduction products for the automotive sector is also extended and provides Trelleborg with another market position to develop. The transaction complements the antivibration product area and creates opportunities to promote strong growth in North America and the rest of the world through Trelleborg's global network. An attractive position is also gained within fluid systems for the automotive industry, a product area with the potential to further develop and expand within Trelleborg Automotive's business structure. The purchase price for LAC is approximately SEK 1.5 billion, corresponding to around 0.5 times the company's sales, or five times its earnings before financial items and depreciation. "The acquisition is in line with our strategy to grow our core business into leading positions," says Trelleborg President and CEO Fredrik Arp. "We strengthen not only our positions as a world leader within antivibration, but also penetrate attractive product areas with growth opportunities, such as noise-reduction and fluid systems." Following this acquisition, it is estimated that Trelleborg's core operations will have annual sales of around SEK 16.5 billion, with some 15, 500 employees in 40 countries. Substantial synergies are anticipated as a result of the integration of the LAC operations with Trelleborg's existing operations in the automotive area. The cost-related synergies are expected to be realized within a two- year period. A restructuring program to meet the costs of the integration work will be set up in connection with the acquisition. Organizationally, LAC will be placed in the Trelleborg Automotive business area under the management of George Caplea. It is estimated that the Trelleborg Group's earnings per share will be positively affected with approximately SEK 1:00 already in 2001. The acquisition, which is subject to the approval of the competition authorities involved, is expected to be concluded early next year. For further information please contact Senior Vice President Corporate Communications at Trelleborg AB, Mikael Byström, telephone. +46 708 55 21 69. www.trelleborg.com Trelleborg is a global industrial group undergoing a major process of change. Operations are based on spearhead competence within polymer materials and a high level of industrial know-how, with functional solutions and systems designed to meet the needs of our customers. The Group has annual sales of SEK 13.5 billion, with slightly more than 12,500 employees in 37 countries. Trelleborg consists of four business areas: Trelleborg Automotive, Trelleborg Wheel Systems, Trelleborg Engineered Systems and Trelleborg Building Systems. The Trelleborg share has been quoted on the A list of the OM Stockholm Exchange since 1964. Conference-call with Trelleborg in connection to the acquisition of Laird's automotive component activities In connection to Trelleborgs acquisition of UK based Laird Group Plc's automotive compont activities there will be a conference call with the management of Trelleborg today, November 15, 2000. The conference call starts 09.00 UK time. To participate in the conference call: From UK 020 87 81 05 96. Outsiden UK +44 20 87 81 05 96 Password: Mikael During the conference call there will be a presentation of the acqusition followed by a Q&A-session with the Trelleborg President and CEO Fredrik Arp. On the homepage of Trelleborg "www.trelleborg.com" there will be a slide- presentation of the acqusition. Click on "Financial information", "Presentations" and then open this Acrobat-file. The file will be published on the net when the conference call starts. ------------------------------------------------------------ This information was brought to you by BIT http://www.bit.se The following files are available for download: http://www.bit.se/bitonline/2000/11/15/20001115BIT00080/bit0001.doc http://www.bit.se/bitonline/2000/11/15/20001115BIT00080/bit0002.pdf