Focus on Selected Segments Continues with Further Trelleborg Divestment
The divestment programme underway at Trelleborg as part of the company’s strategy to focus on selected segments has taken a further step with the signing of an agreement to divest its brake hoses for light vehicles operation, which is located in Brazil and is part of the Trelleborg Automotive business area. The buyer is the French company Flexitech.
“This is a good solution,” stated Jim Law, president of the Trelleborg Automotive business area. “This is the only operation in Trelleborg within this product area. It is a local operation in Brazil and the effort required to develop the business to the next level would require a major strategic shift. Accordingly, we have chosen to divest the operation to make way for other investments. “
Trelleborg Automotive has long had a major operation in Brazil in the area of antivibration for light vehicles, which has performed extremely well. The divestment will enable the company to further focus on this operation. The divested business has annual sales of approximately SEK 140 million (₤13.1 million) and more than 200 employees. All sales are made in the Brazilian market.
The purchase consideration amounts to approximately SEK 65 million (₤6.1 million). In addition to the purchase consideration, Trelleborg will retain assets primarily related to the infrastructure in an amount of approximately SEK 30 million. The acquisition is dependent on the approval of the appropriate authorities and is expected to be completed during the first quarter of 2011.