TRELLEBORG GROUP
Acquisiton of “Polymer Sealing Solutions” from Smiths Group / Creation of new business area
The Trelleborg Group (S-23122 Trelleborg; www.trelleborg.com) has agreed to pay GBP 495m for the Polymer Sealing Solutions business of the Smiths Group (GB-London NW11 8DS; www.smiths-group.com). The sale is subject to EU and US regulatory approval.
Smiths acquired PSS when it bought the engineering group TI. The business supplies polymer-based precision seals to the automotive, industrial and aerospace markets through brands such as Busak + Shamban, Forsheda, Dowty Automotive and Polypac. It has seven sites in the UK with a staff of 1,400 and 11 facilities in continental Europe – mainly in Malta, Poland, Scandinavia and Italy – employing a further 3,300. There are another 1,000 employees at manufacturing sites in the US, with some 300 people located elsewhere around the world. PSS has net assets of GBP 340m, including GBP 190m of capitalised goodwill.
“The acquisition represents a decisive step forward that not only complements our operations and provides synergies, but also gives us an excellent platform for further growth in an attractive product area,” says Trelleborg president and CEO, Fredrik Arp.
Polymer Sealing Solutions had sales of GBP 378m in 2002, which generated an operating profit of GBP 45m. The operation, which accounts for 20% of the European industrial seals market, will form a new business area – the fifth – within Trelleborg, with its turnover accounting for an estimated 24% of Trelleborg sales.
The PSS range of products includes seals and systems based on elastomers, thermoplastics and PTFE, a number of which complement the rubber-to-metal products manufactured in the UK that form part of the anti-vibration business acquired some four years ago from Invensys. Trelleborg says it expects cost synergies of SEK 100m (GBP 8m) once the full impact of the acquisition has been achieved after three years. Smiths is to concentrate on its core aerospace, defence and medical businesses.
Smiths acquired PSS when it bought the engineering group TI. The business supplies polymer-based precision seals to the automotive, industrial and aerospace markets through brands such as Busak + Shamban, Forsheda, Dowty Automotive and Polypac. It has seven sites in the UK with a staff of 1,400 and 11 facilities in continental Europe – mainly in Malta, Poland, Scandinavia and Italy – employing a further 3,300. There are another 1,000 employees at manufacturing sites in the US, with some 300 people located elsewhere around the world. PSS has net assets of GBP 340m, including GBP 190m of capitalised goodwill.
“The acquisition represents a decisive step forward that not only complements our operations and provides synergies, but also gives us an excellent platform for further growth in an attractive product area,” says Trelleborg president and CEO, Fredrik Arp.
Polymer Sealing Solutions had sales of GBP 378m in 2002, which generated an operating profit of GBP 45m. The operation, which accounts for 20% of the European industrial seals market, will form a new business area – the fifth – within Trelleborg, with its turnover accounting for an estimated 24% of Trelleborg sales.
The PSS range of products includes seals and systems based on elastomers, thermoplastics and PTFE, a number of which complement the rubber-to-metal products manufactured in the UK that form part of the anti-vibration business acquired some four years ago from Invensys. Trelleborg says it expects cost synergies of SEK 100m (GBP 8m) once the full impact of the acquisition has been achieved after three years. Smiths is to concentrate on its core aerospace, defence and medical businesses.
14.08.2003 Plasteurope.com [14293]
Published on 14.08.2003