Trelleborg has announced that it has reached an agreement to acquire CGS Holding a.s. The total cash consideration amounts to approximately SEK 10.9 billion on a cash and debt-free basis.
Closing of the transaction is subject to approvals from relevant competition authorities and is expected to be completed in the first half of 2016.
Peter Nilsson, President and CEO of Trelleborg, said: “I am very proud to announce this highly complementary acquisition, which is a significant and attractive add-on to our existing businesses. CGS, with its strong and well performing operations in agricultural and industrial tires as well as engineered polymer solutions, will strengthen and complement Trelleborg’s already leading positions in a number of existing areas.”
Mr Nilsson added: “CGS has a highly complementary manufacturing footprint with competitive production in Central and Eastern Europe, USA and Mexico. The transaction adds to our capabilities, represents a strong strategic fit and is expected to generate synergies. The plan is to gradually integrate the acquired entities into Trelleborg’s existing five business areas. We regard the purchase price as attractive given the significant synergy potential and expected turnaround for the agricultural market,” concludes Peter Nilsson.
Edited from press release by Callum O'Reilly
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