Trelleborg divests roofing operations Continues its focus on selected segments

Trelleborg divests roofing operations Continues its focus on selected
segments

As part of its strategic focus, Trelleborg has entered an agreement to
divest its roofing operations, which is included in the Trelleborg
Engineered Systems business area. The operations will be taken over by
Axcel, a Nordic private equity fund with offices in both Copenhagen and
Stockholm.

“This divestment is a further step in our strategy to focus on selected
segments,” says Peter Nilsson, President and CEO of Trelleborg. “The
business we are divesting is now ready to be taken to the next level and
we are prioritizing ventures in other areas. Through the divestment, we
are freeing up capital and creating flexibility.”

“We are satisfied with this solution,” says Lennart Johansson, business
area President of Trelleborg Engineered Systems. “We have developed this
into a good operation that will now have the possibility for further
development by a new owner, at the same time as we can focus on such
activities that are future core areas for us.”

The business to be divested comprises polymer and bitumen-based products
for sealing and waterproofing applications for industry and consumers.
The business includes such brands as Mataki, Trebolit, Trelleborg
Phønix, Hetag Tagmaterialer and Prelasti.

The divested part has annual sales of approximately SEK 900 M and the
operation has about 230 employees. About 85 percent of sales take place
in Sweden and Denmark. Production is conducted at three locations in
Sweden and Denmark.

The purchase consideration amounts to approximately EUR 70 M, which is
expected to lead to a capital gain in accounting terms of approximately
SEK 300 M after tax. The purchase consideration is partly financed with
an interest-bearing vendor note of about EUR 11 M from Trelleborg. The
parties have entered into a long-term agreement for the delivery of
rubber compounds from Trelleborg corresponding to annual sales of
approximately SEK 65 M.  

The acquisition requires approval of the appropriate authorities, and is
expected to be finalized in the first quarter of 2011.

The Trelleborg Engineered Systems business area has about 7,000
employees with sales of approximately SEK 11,200 M. Trelleborg
Engineered Systems is a leading global supplier of engineering solutions
that aim to seal, protect and secure investments, processes and people
in demanding environments.

For further information, please contact:

Media: Vice President Media Relations Mikael Sjöblom, +46 (0)410  67015,
+46 (0)733 74 70 15, mikael.sjoblom@trelleborg.com

Investors/analysts: Vice President IR Conny Torstensson, +46 (0)410
67070, +46 (0)734 087070, conny.torstensson@trelleborg.com