Trelleborg acquires ČGS Holding
Reinforcing Trelleborg as a world leader in engineered polymer solutions
Trelleborg has signed an agreement to acquire ČGS Holding a.s. – a privately-owned company with leading positions in agricultural, industrial and specialty tires as well as engineered polymer solutions. The total cash consideration amounts to approximately SEK 10.9 billion on a cash and debt-free basis. ČGS is headquartered in the Czech Republic and generated sales of approximately SEK 5.6 billion with an EBIT-margin of 16 percent in the rolling 12-months period ended June 30, 2015.
Closing of the transaction is subject to approvals from relevant competition authorities and is expected to be completed in the first half of 2016.
“I am very proud to announce this highly complementary acquisition, which is a significant and attractive add-on to our existing businesses. ČGS, with its strong and favorably performing operations in agricultural and industrial tires as well as engineered polymer solutions, will strengthen and complement Trelleborg’s already leading positions in a number of existing areas,” says Peter Nilsson, President and CEO of Trelleborg.
With the acquisition of ČGS and its subsidiary Mitas, Trelleborg is establishing itself as a global leader in agricultural tires and reinforces its leading position in industrial tires. As a result of the acquisition, Trelleborg Wheel Systems will almost double its revenues, broaden its geographical reach and add new positions in complementary tire niches. Mitas is performing strongly despite the current downturn in the agricultural market. Moreover, the acquisition of ČGS’s other industrial polymer businesses will enhance Trelleborg’s leading positions in several of the Group’s existing business areas.