Trelleborg divests UK automotive component plant
Part of action program announced within Trelleborg Automotive in Europe
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 Coventry, UK, which belong to Trelleborg
Automotive UK. The operations will be taken over by the company's management.
The operations conducted in Coventry are a part of the AVS business and mainly
comprise the production of airsprings. The operation has approximately 110
employees. It generated sales of about SEK 150 M in 2006 and reported a loss.
Trelleborg acquired the business as part of the acquisition of BTR, Invensys'
anti-vibration systems, in 2000.
“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 Coventry will now have an opportunity to grow within its
particular area.”
From Trelleborg's viewpoint, it is estimated that the divestment will result in
a capital loss of approximately SEK 95 M before taxes. The sale is expected to
have a positive impact of about SEK 15 M 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.
Further information can be obtained from Viktoria Bergman, Trelleborg's Senior
Vice President, Corporate Communications, +46 (0)410-670 94, +46 (0)708-47 57
33, or from Mikael Byström, Trelleborg's Senior Vice President Investor
Relations, +46 (0)410-670 37, +46 (0)708-55 21 69.
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 SEK 27 billion, with about 24,000 employees in 40 countries. The
Group comprises four business areas: Trelleborg Engineered Systems, Trelleborg
Automotive, Trelleborg Sealing Solutions and Trelleborg Wheel Systems. The
Trelleborg share has been listed on the Stockholm Stock Exchange since 1964 and
is listed on the OMX Nordic List, large cap.
www.trelleborg.com
Trelleborg divests UK automotive component plant
| Source: Trelleborg AB