Lower raw material exposure and better ESG profile – What Trelleborg gains from TWS sale
Apart from the 2.1-billion-euro price tag what does Trelleborg Group stand to gain from the sale of its Trelleborg Wheel Systems business unit?
Industrial Tyres
Apart from the 2.1-billion-euro price tag what does Trelleborg Group stand to gain from the sale of its Trelleborg Wheel Systems business unit?
Three months after we published the news, The Yokohama Rubber Co., Ltd., has confirmed that it has entered into a share purchase agreement with Swedish-based Trelleborg AB to acquire all outstanding shares of Trelleborg Wheel Systems Holding AB (TWS). According to Yokohama, TWS’s enterprise value is €2,040 million (about ¥265.2 billion). But the acquisition agreement includes a performance-linked earn-out clause, which could increase the acquisition price by up to €60 million depending on TWS’s 2022 financial results. And therefore Trelleborg refers to the sale as a 2.1 billion euro deal.
Trelleborg Wheel Systems will increase the price of all its brands across all segments globally by up to 15 per cent. The sharp price hike takes effect from April 2022.
CAM International have signed an agreement with Continental Tyre’s fleet management division, Conti360° Solutions, to help e-jobsheet app subscribers directly connect with fleet management software – via the TiDaeX platform.
Construction companies are increasingly considering the environmental impact of their operations and this includes their machinery choices. Legislation has driven the development of clean engines – in the off-highway sector new machines must now be built with Stage V low emission engines. Of course, battery power is also now becoming more prominent as a power source for smaller plant and equipment. So, what about tyres?
As a result of continued high raw material prices and “dramatically” rising freight costs in 2022, Yokohama Off-Highway Tires (YOHT) is increasing prices for its products from 1 April 2022. Announcing the upcoming changes, YOHT states that although it has absorbed “the majority of the costs” incurred upstream and during transportation and has thus implemented price increases that are “lower than industry average,” it is “unavoidable to pass a minor portion to its business partners.”
Continental Tyre South Africa has sold the manufacturing assets it used to make industrial and agricultural tyres in Port Elizabeth, South Africa. Prior to the sale, Continental manufactured bias-ply and radial agricultural tyres at the Port Elizabeth location. Continental’s ongoing production operations, such as its passenger car and light truck lines, are not affected by the news.
Magna Tyres has agreed to buy Polish tyre dealer Industra Ltd. Financial details have not been disclosed. But Magna Tyres Group did report that it is “on track to increase turnover to 600 million euros in three to five years amd that Industra’s annual net turnover is almost 10 million euros.
GRI recently acquired specialty tyre company Protyre in the Baltics. GRI has previously bought Protyre in Estonia as well as Nortire in the region. Together they highlight GRI’s material handling, agriculture, and OEM growth strategy. According to Martynas Jankauskis, managing director, of GRI-owned Nortire, the synergy with GRI is poised to “increase its sales volumes by ten times in the Baltics”.
Yokohama Tire has bid around $2 billion for Trelleborg Wheel Systems in a move that could further expand the Japanese company’s growing off-highway tyre business. Sources close to the bid told Tyres & Accessories that Yokohama is currently in a due diligence process that is likely to be completed during the next month or so. Yokohama previously bid for Prometeon, the ex-Pirelli industrial/off-highway tyre business at the end of 2019. Despite ongoing discussions over the following year or so, that deal wasn’t completed. Yokohama appointed the former global head of Prometeon, Gregorio Borgo, as its European president earlier this year. Trelleborg Wheel Systems executives declined to comment on the reports.
Concrete supplier Anytime Concrete was fined on 29 October 2021 after an agency worker contracted to work at its site died following a tyre explosion in 2019. Dudley Magistrates’ Court heard how the contractor suffered fatal injuries when using an air hose/compressed air to inflate the tyre of an articulated wheel loader.
In mid-November Tyres & Accessories visited Manchester-based Fork Truck Tyres, a company that is rapidly becoming a key player in the Northern English industrial tyre business and considering its next steps towards expansion. T&A spoke with company founder John Grey, sales manager Tony Gallagher and warehouse manager Stuart Dorney in order to find out more.
Founded as Panther Tyres, TX Tyres celebrates 50 years in business this year. In a recent visit to Liverpool, Tyres & Accessories took the opportunity to meet managing director and former NTDA chairman Stephen Callow, consider the legacy of his father (company founder Ron Callow) and to look to the future of the TX Tyres retreading operation, which includes diversifying into new segments.
Magna Tyres has refreshed its brand image with a new logo, website and corporate slogan – You know why. The company describes its new identity as “even more recognisable, more professional and with a strong impact” and believes it will help it to grow Magna Tyres into an “even stronger” brand.
Trelleborg Wheel Systems has launched the PS800, its newest press on solid tyre for medium intensity material handling applications; it describes the Trelleborg PS800 as “versatile for working in all conditions indoors or out.”
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