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Trelleborg acquires precision seal business from Smiths of UK

Published on 2003-08-22. Author : SpecialChem

 

The Trelleborg Group has signed an agreement with Smiths Group Plc of the UK to acquire its operations in polymer-based precision seals (Polymer Sealing Solutions - PSS). Following the acquisition, the annual sales of the Trelleborg Group are expected to total SEK 22.5 billion, with approximately 21,000 employees in some 40 countries.

Fredrik Arp, President and CEO of Trelleborg, says "PSS is a well-run company with leading positions and high technology products within market segments we know and understand. The acquisition represents a decisive step forward that not only complements our operations and provides synergies, but which also gives us an excellent platform for further growth in an attractive product area."

PSS develops, manufactures and markets security-critical polymer-based precision seals and systems. PSS operates primarily within four market segments: industrial applications (Busak+Shamban), the automotive industry (Dowty Auto), the aerospace industry (Shamban) and pipe seals (Forsheda). PSS is among the three market leaders in Europe or the US in all four of these segments and holds a leading position in the industrial segment in Europe. PSS has annual sales of approximately SEK 5.5 billion and some 6,000 employees, mainly in Europe and North America.

The acquisition is expected to provide both cost and sales synergies. In a preliminary evaluation, cost synergies have been estimated at approximately SEK 100 M annually once the full impact has been achieved after three years. The Trelleborg Group's earnings per share is expected to be affected positively in 2004.

The acquired operations will form a new business area within the Trelleborg Group and if conditioned the approval of the relevant competition authorities, the acquisition is forecast to be completed towards the end of the third quarter.

Trelleborg is a global industrial group. Operations are based on spearhead competence within polymer materials and a high level of industrial know-how, combined with functional solutions and systems designed to meet the needs of our customers. The Trelleborg Group has annual sales of approximately SEK 18 billion, with about 15,000 employees in 40 countries. Trelleborg consists of four business areas: Trelleborg Automotive, Trelleborg Wheel Systems, Trelleborg Engineered Systems and Trelleborg Building Systems.


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