As part of Trelleborg’s strategic and operational action program within the Trelleborg Automotive business area, Trelleborg has entered an agreement in principal to divest its operations in
The operations conducted in
“This is an additional step in the group’s efforts to optimize the portfolio and to concentrate on selected segments,” says Roger Johansson, business area president of Trelleborg Automotive. “We regard this as an excellent solution. This operation is not part of Trelleborg’s core business; it has few synergies with our remaining activities and is limited in size. The transaction will enable us to further focus our automotive operations, at the same time as the business conducted in
From Trelleborg’s viewpoint, it is estimated that the divestment will result in a capital loss of approximately SEK95 million before taxes. The sale is expected to have a positive impact of about SEK15 million on cash flow.
The divestment requires fulfillment of certain conditions as well as negotiations with the employees’ representatives. Takeover will occur during the fourth quarter of 2007.
Trelleborg is a global industrial group whose leading positions are based on advanced polymer technology and in-depth applications know-how. Trelleborg develops high-performance solutions that seal, damp and protect in demanding industrial environments. The Trelleborg Group had annual sales 2006 of approximately SEK27 billion, with approximately 24,000 employees in 40 countries. The group comprises four business areas: Trelleborg Engineered Systems, Trelleborg Automotive, Trelleborg Sealing Solutions and Trelleborg Wheel Systems.