Trelleborg has finalised its acquisition of leading agricultural, industrial and specialty tyre manufacturer, CGS Holding as. The total cash consideration amounted to approximately 10.9 billion Swedish krona (approximately £0.91 billion) on a cash and debt-free basis. CGS is headquartered in the Czech Republic and generated sales of approximately SEK 5.6 billion (£0.47 billion) in 2015 with an operating margin of 16.5 percent. The Czech company also produces engineered polymer solutions.
Trelleborg has signed an agreement to acquire the Czech Republic’s CGS Holding a.s. for approximately 10.9 billion Swedish Krona (£830 million) on a cash and debt-free basis. The privately-owned company is active in the agricultural and specialty tyre business segments, including the strong Mitas tyre brand, as well as engineered polymer solutions. Closing of the transaction is subject to approvals from relevant competition authorities and is expected to be completed in the first half of 2016.
Slovenian tyre producer Savatech has recalled its Sport Force radial motorcycle tyres. The tyres, which were sold to customers mostly in Europe, may develop a bulge in the tread during sustained high speed riding. This could cause vibration and, in the most extreme of cases, some of the tread may become detached. Savatech clarified that the problem has only been simulated in controlled and the most severe of conditions. The Sport Force recall is pre-emptive.
Ask many Subaru owners if they’re familiar with Fuji Heavy Industries and you’ll receive a negative response, even though one of the company’s products is parked in the driveway. Czech Republic-based tyre maker Mitas has faced a similar situation in recent years. Even though the off-road specialist’s share of the European agricultural tyre market (not counting imports from outside Europe) is said to be around 35 per cent, recognition of the Mitas name doesn’t necessarily reflect this. The company now intends to change this state of affairs, and the percentage of tyres it produces under the Mitas brand name is set to markedly increase over the coming five years.