Trelleborg acquires precision seal business from Smiths of UK

Trelleborg acquires precision seal business from Smiths of UK Trelleborg Group expands by SEK 5.5 billion in sales and 6,000 employees The Trelleborg Group has signed an agreement with Smiths Group Plc of the UK to acquire its operations in polymer-based precision seals (Polymer Sealing Solutions - PSS). PSS has annual sales of approximately SEK 5.5 billion and some 6,000 employees, mainly in Europe and North America. Following the acquisition, the annual sales of the Trelleborg Group are expected to total SEK 22,5 billion, with approximately 21,000 employees in some 40 countries. "PSS is a well-run company with leading positions and high technology products within market segments we know and understand," says Fredrik Arp, President and CEO of Trelleborg. "The acquisition represents a decisive step forward that not only complements our operations and provides synergies, but which also gives us an excellent platform for further growth in an attractive product area." PSS develops, manufactures and markets security-critical polymer-based precision seals and systems. PSS operates primarily within four market segments: industrial applications (Busak+Shamban), the automotive industry (Dowty Auto), the aerospace industry (Shamban) and pipe seals (Forsheda). PSS is among the three market leaders in Europe or the US in all four of these segments and holds a leading position in the industrial segment in Europe. The purchase price amounts to a cash sum of approximately £495 million (SEK 6 500 M). This entails goodwill amounting to SEK 4,500 M for the Trelleborg Group. The operating profit* for the 12 months ending June, 2003, amounts to approximately SEK 680 M. The acquired operations will form a new business area within the Trelleborg Group. The acquisition is expected to provide both cost and sales synergies. In a preliminary evaluation, cost synergies have been estimated at approximately SEK 100 M annually once the full impact has been achieved after three years. The Trelleborg Group's earnings per share is expected to be affected positively in 2004. Conditional on the approval of the relevant competition authorities, the acquisition is forecast to be completed towards the end of the third quarter. *Trelleborg estimate at average rate GBP/SEK For further information, please contact: Mikael Byström, Senior Vice President, Corporate Communications at Trelleborg AB, phone +46 410 670 37, +46 708-552169, CFO Bo Jacobsson, tel +46 410-670 99, +46 70-685 65 60 or Vice President, Corporate Communications Viktoria Bergman, tel +46 410-670 94, +46 708-47 57 33. Trelleborg is a global industrial group. Operations are based on spearhead competence within polymer materials and a high level of industrial know-how, combined with functional solutions and systems designed to meet the needs of our customers. The Trelleborg Group has annual sales of approximately SEK 18 billion, with about 15,000 employees in 40 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 Stockholm Exchange since 1964. Press conference to be held at 11.00 a.m. at Berns in Stockholm regarding the acquisition of PSS - publication of Trelleborg Group's Q2 report brought forward In connection with Trelleborg's acquisition of polymer operations from Smiths of the UK, a press conference will be held by Trelleborg's Senior Management today, Monday, July 21. CEO Fredrik Arp and CFO Bo Jacobsson will present the acquisition. The publication of the Trelleborg Group's Q2 report, which was to have taken place on Tuesday, July 22, will now be brought forward. The report will be published today. The previously announced presentation of the report will be replaced by today's press conference, where the report will also be presented. The press conference will take place at Berns in Stockholm, room "Strindbergssalen", starting at 11.00 a.m. Address: Näckströmsgatan 8. It will also be possible to participate by telephone or to listen via Internet. To participate in the conference, please call: Tel +46 85 00 52 880. To listen via Internet:, click on financial info, then on presentations, and press conference. About 30 minutes prior to the start of the conference an illustrated presentation of the acquisition will be available on Trelleborg's website, Click on "Financial info," and then on "Presentations." The presentation is provided as an Acrobat file. ------------------------------------------------------------ This information was brought to you by Waymaker The following files are available for download: Fact sheet