Trelleborg (Trelleborg / Sweden; www.trelleborg.com) is to sell its Fluid Solutions operation to private equity company Bavaria Industriekapital (Munich / Germany; www.baikap.de) for about SEK 300m (EUR 31m). Peter Nilsson, president and CEO of the Swedish industrial group, said the sale of Fluid Solutions, which is part of Trelleborg’s automotive business, was part of plans for the automotive business to focus on noise and vibration-damping solutions. The transaction is expected to be completed during the second quarter of 2010.

Some SEK 200m of the sale price is comprised of cash and cash equivalents, Trelleborg said. The divestment is expected to result in an accounting capital loss for Trelleborg of approximately SEK 150m after tax, the company added.

Fluid Solutions manufactures components such as hoses for engine cooling and air supply solutions, and has approximately 1,900 employees, with operations in France, Italy, Poland, Slovakia, Spain, the Czech Republic, Turkey and Germany. The operation had sales of approximately SEK 1.3 bn in 2009 and recorded a loss. Bavaria Industriekapital said it plans to develop the Fluid Solutions footprint internationally and retain the existing management team. “We see the business as a good platform to profit from the growing consolidation in the automotive supplier industry,” remarked CEO Reimar Scholz.