Trelleborg signs agreement with Freudenberg to form a global company in antivibration solutions
Trelleborg and Freudenberg have signed an agreement to form a 50/50 joint venture to produce antivibration solutions for light and heavy vehicles. Completion of the transaction is subject to the approval of the relevant competition authorities. As announced on January 17, 2011, when a letter of intent was signed by both parties, the new joint venture will comprise Trelleborg Automotive's operations in antivibration solutions and Freudenberg's corresponding activities, Vibracoustic.
“The signing of this agreement is a further step in our strategy to focus and strengthen Trelleborg in selected segments. It allows us to develop other parts of the Group. At the same time we create a global leader in antivibration solutions, a growing segment within the automotive industry. This agreement will generate value for Trelleborg, our customers and our shareholders,” says President and CEO Peter Nilsson.
“The joint venture will be a global leader in antivibration solutions that will be able to offer the market’s best geographical coverage and broadest product portfolio. The offering to our customers will be strong,” continues Peter Nilsson.
Trelleborg and Freudenberg have reached an agreement in respect of the joint venture on all points of principle and only certain ancillary and transitional arrangements regarding the joint venture remain to be finalized, which is estimated to be done in January 2012. Completion of the transaction is then subject to approval of the relevant competition authorities.
“We will now continue our work to bring this joint venture to fruition. Together with Freudenberg, we will immediately apply for competition law clearance in Brazil and during January 2012 we will finalize the remaining ancillary documents in order to be able to then submit a formal application to the other relevant competition authorities requesting authorization to form the joint venture,” concludes Peter Nilsson.
At year-end 2010, total annual sales for the joint venture were estimated at approximately
SEK 12 billion, with 8,100 employees in 17 countries. The part of Trelleborg Automotive that will be included in the joint venture relates to the antivibration business for light and heavy vehicles. At year-end 2010, it accounted for about 75 percent of sales in Trelleborg Automotive and had annual sales of approximately SEK 6.3 billion and approximately 5,200 employees. Trelleborg Automotive’s operations outside the area of antivibration are not affected.
Apart from the information presented above, Trelleborg has nothing further to communicate at this time.