TRELLEBORG, Sweden--(BUSINESS WIRE)--Regulatory News:
Trelleborg (STO:TRELB) 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 Vibracoustic. Total annual sales are estimated to approximately SEK 12 billion, with 8,100 employees in 17 countries.
“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.
Invitation to telephone conference today, January 17, at 14:30 CET
Analysts, investors and media are invited to attend a telephone conference which will be held today, January 17, at 14:30 CET, regarding the letter of intent between Trelleborg and Freudenberg.
Trelleborg will be represented by President and CEO Peter Nilsson and CFO Bo Jacobsson.
The telephone conference will also be streamed in real-time on the Internet. Visit our website: www.trelleborg.com/investors/presentations for the link to the presentation material.
Please call the conference 5 to 10 minutes prior to the specified time to ensure a punctual start to the meeting.
Call: +44 (0) 20 7138 0824 (overseas) or +46 (0)8 5051 3786 (Sweden)
Code: 5685554 or “Trelleborg”
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 during 2009 of approximately SEK 27 billion, with about 20,000 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
This information is such that Trelleborg AB (publ) is to publish in accordance with the Swedish Securities Markets Act and/or the Financial Instruments Trading Act. The information was submitted for publication on January 17, 2010 at 08:30 CET.
This information was brought to you by Cision http://www.cisionwire.com