Trelleborg acquires operation to strengthen position in precision seals for life science
Trelleborg has through its Sealing Solutions business area signed an agreement to acquire operations within Silcotech Group, with total sales of slightly more than SEK 200 M and some 150 employees. The operation focuses on precision seals and components in liquid silicone, primarily for the pharmaceutical industry and medical technology sector, but also used in certain critical electronic applications.
“We have assigned priority to growth in life science and Silcotech is one of the leading companies in its niche segment,” says Claus Barsøe, President of the Trelleborg Sealing Solutions business area. “This acquisition strengthens our product portfolio and improves our position in this area. It also provides good potential for synergies in terms of sales, enabling us to almost immediately offer Silcotech’s solutions to certain existing customers, and in relation to manufacturing through mutual technology synergies.
“The addition of Silcotech expands our know-how in cleanroom manufacturing of silicon components for the pharmaceutical and medical technology sectors in a highly automated environment. The staff of Silcotech adds a strong competence base, which will play a crucial role in our future global ambitions in life science.”
The purchase consideration amounts to approximately SEK 300 M and the acquisition is expected to be finalized during the second quarter 2011. The Silcotech Group is privately owned and has a manufacturing operation in Stein am Rhein in Switzerland and joint venture operations in Pernik, Bulgaria and Huizhou, in southern China. The acquisition encompasses the entire operation in Switzerland, including the plant, and 50 percent of the joint venture in Bulgaria, with an option to acquire the remaining share, and an option to acquire the majority share of the joint venture in China.