Trelleborg and Freudenberg have signed a letter of intent to form a 50/50 joint venture within antivibration solutions for light and heavy vehicles.
The joint venture will consist of Trelleborg Automotive’s operations in antivibration solutions and Freudenberg’s corresponding activities, known as Vibracoustic. Total annual sales are estimated to approximately SEK 12 billion, with 8,100 employees in 17 countries.
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“With this joint venture, we form a global leader and a strong partner for our customers and create a platform for accelerated development and future growth”, Peter Nilsson, President and CEO of the Trelleborg Group says. “The companies’ customer portfolios complement each other very well and Trelleborg’s broad geographical presence is complemented by Freudenberg’s broader product portfolio. This means that we will be able to offer automakers worldwide the best geographical coverage and the broadest product portfolio within antivibration solutions”.
“This creates opportunities for an efficient structure in a fragmented market, and I look forward to working out the details of what we see is a highly value creating solution for Trelleborg, our customers and shareholders”, Peter Nilsson says. “This also provides opportunities for the best future development of Trelleborg Automotive’s antivibration activity, and at the same time allows us to focus on continuing the development of the other parts of the Trelleborg Group”.
The part of Trelleborg Automotive that will be included in the joint venture, relates to the antivibration business for light and heavy vehicles. It accounts for about 75 percent of sales in Trelleborg Automotive and has annual sales of approximately SEK 6,300 M and approximately 5,200 employees. Trelleborg Automotive’s operations outside the area of antivibration are not affected.
Currently, Trelleborg has no further information to provide, in addition to the above information. In order to make the process as efficient and quick as possible, and as the process now is entering a stage where the risk of rumors increases, Trelleborg has decided to publish the intent of the parties at this early stage. Due diligence and contract process is ongoing. The transaction is conditional upon the fulfillment of certain conditions and approval by relevant competition authorities. The formation of the joint venture is expected to happen during 2011.
