Trelleborg announced it has signed an agreement to divest its operations in brake hoses for light vehicles located in Brazil. The Brazil business is part of the Trelleborg Automotive business segment. Trelleborg will sell the Brazilian operations to French company Flexitech. This divestment is a further step in the Trelleborg Group’s strategy of focusing on selected segments.

Jim Law, President of the Trelleborg Automotive business segment noted the divestment was “a good solution.” According to Law, this is the only operation in Trelleborg within this product area. It is a local operation in Brazil and the effort required to develop the business to the next level would require a major strategic shift, he said. Accordingly, the Swedish firm chose to divest the operation to make way for other investments.

Trelleborg Automotive has long had a major operation in Brazil in the area of anti-vibration for light vehicles, which has performed extremely well. The divestment will enable further focusing on this operation. The divested business has annual sales of approximately SEK 140 million and slightly more than 200 employees. All sales are made in the Brazilian market.

The purchase consideration amounts to approximately SEK 65 million. In addition to the purchase consideration, Trelleborg will retain assets primarily related to the infrastructure in an amount of approximately SEK 30 million. The acquisition is dependent on the approval of the appropriate authorities and is expected to be completed during the first quarter of 2011.

The Trelleborg Automotive business area is world-leading in the development and production of polymer-based components and systems for noise and vibration damping for cars, light vehicles and heavy trucks. The business area has about 7,000 employees.

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. Flexitech Europe is a France-based designer, manufacturer and marketer of automotive hydraulic brake hoses.

23 Jan 2011.