Jun 1 2010
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 ibration-damping solutions) for the automotive industry.