This will greatly enhance the company’s portfolio of agricultural, industrial and specialty tires with the addition of the Mitas products, which will be gradually integrated into the Trelleborg Wheel Systems business. It will also increase Trelleborg’s headcount to around 23,000 employees in 47 countries.
?GS is headquartered in the Czech Republic and generated sales of approximately Skr 5.6bn (US$674.3m) in 2015 with an operating margin of 16.5%. The Mitas brand accounts for approximately two-thirds of ?GS Holding’s sales.
The total cash consideration amounted to approximately Skr 10.9bn (US$1.31bn) on a cash and debt-free basis.
Peter Nilsson, president and CEO of Trelleborg, said, “It is highly gratifying to welcome ?GS to the Trelleborg Group. The company has long been on our list of interesting acquisitions. The acquisition means that Trelleborg will almost double its sales in agricultural tires, strengthen its leading position in industrial tires and add new positions in complementary specialty tires segments.
“We are convinced the agricultural market will recover, enabling us to benefit from an attractive footprint when it does and that’s why we considered the purchase to be attractive.”
1 June, 2016