Trelleborg focuses its activities in Trelleborg Automotive – divests Fluid Solutions business unit
Trelleborg, as a part of the effort to focus its activities, has entered into an agreement to divest its Fluid Solutions operation within the Trelleborg Automotive business area. The operation will be taken over by Bavaria Industriekapital AG, located in Munich, Germany.
“This is a further step in our strategy to focus our operations to selected segments,” says Peter Nilsson, President and CEO of Trelleborg. “As a result of this transaction, we are further concentrating our automotive-related operations. At Trelleborg Automotive, we will now put even more effort into strengthening our world-leading position in noise and vibration-damping solutions for the automotive industry.”
“We are satisfied with this solution,” says Roger Johansson, Business Area President of Trelleborg Automotive. “The comprehensive measures we have performed in recent years to improve business in Fluid Solutions have created an enhanced and sounder operation that will now have the possibility of further development under a new owner. Fluid Solutions’ employees have contributed very strong operational and structural work during a very turbulent period for the automotive industry.”
Fluid Solutions has approximately 1,900 employees and operations in France, Italy, Poland, Slovakia, Spain, the Czech Republic, Turkey and Germany. Fluid Solutions manufactures components such as hoses for engine-cooling and air-supply solutions.
The operations had sales of approximately SEK 1,300 M in 2009 and recorded a loss. The purchase price amounts to approximately SEK 300 M based on current working capital level, of which about
SEK 200 M will comprise cash and cash equivalents at the time of the acquisition. The divestment is estimated to have an accounting capital loss for Trelleborg of approximately SEK 150 M after tax.
The divestment requires the fulfillment of certain conditions. The takeover is expected to occur during second quarter 2010.
The Trelleborg Automotive business area had approximately 7,900 employees at year-end 2009 and sales of approximately SEK 8,400 M in 2009. After the divestment, Trelleborg Automotive’s operations will focus on NVH solutions (Noise, Vibration, Harshness; noise and vibration-damping solutions) for the automotive industry.
Trelleborg is a global industrial group whose leading positions are based on advanced polymer technology and in-depth applications know-how. Trelleborg develops high-performance solutions that seal, damp and protect in demanding industrial environments. The Trelleborg Group had annual sales during 2009 of approximately SEK 27 billion, with about 20,000 employees in 40 countries. The Group comprises four business areas: Trelleborg Engineered Systems, Trelleborg Automotive, Trelleborg Sealing Solutions and Trelleborg Wheel Systems. The Trelleborg share has been listed on the Stockholm Stock Exchange since 1964 and is listed on the OMX Nordic List, Large Cap. www.trelleborg.com
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This information is such that Trelleborg AB (publ) must disclose in accordance with the Swedish Securities Market Act and/or the Financial Instruments Trading (Market Abuse Penalties) Act. This information was submitted for disclosure on 2010-05-31 at 08:00.