Trelleborg has signed an agreement to divest its operations in brake hoses for light vehicles, which is located in Brazil and is part of the Trelleborg Automotive business area. The buyer is the French company Flexitech. This divestment is a further step in the Trelleborg Group’s strategy of focusing on selected segments.
“This is a good solution,” says 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. ”
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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 further focusing on this operation.
The divested business has annual sales of approximately SEK 140 M and slightly more than 200 employees. All sales are made in the Brazilian market.
The purchase consideration amounts to approximately SEK 65 M. In addition to the purchase consideration, Trelleborg will retain assets primarily related to the infrastructure in an amount of approximately SEK 30 M. The acquisition is dependent on the approval of the appropriate authorities and is expected to be completed during the first quarter of 2011.
The Trelleborg Automotive business area is world-leading in the development and production of polymer-based components and systems for noise and vibration damping for cars, light vehicles and heavy trucks. The business area has about 7,000 employees.
