Trelleborg, a supplier of specialty tyres and engineered polymer solutions, has signed an agreement to acquire ČGS Holding.
ČGS Holding is a privately-owned company supplying agricultural and specialty tyres as well as engineered polymer solutions. ČGS is headquartered in the Czech Republic and generated sales of approximately SEK 5,525 billion (US$ 638 million) in the 12-month period ending 30 June 2015.
The SEK 10.9 billion ($1.2 billion) acquisition of ČGS includes its subsidiary Mitas. The deal is expected to be completed in the first half of 2016.
Peter Nilsson, Trelleborg president and CEO, said, “I am very proud to announce this highly complementary acquisition, which is a significant and attractive add-on to our existing businesses. ČGS, with its strong and well performing operations in agricultural and industrial tyres as well as engineered polymer solutions, will strengthen and complement Trelleborg’s already leading positions in a number of existing areas.”
Vera Bechynova, ČGS spokeswoman, said, “Trelleborg is a trustworthy strategic partner possessing a comprehensive vision for the development of ČGS Holding and we are confident that Mitas, Rubena and Savatech rubber manufacturing business will be placed in capable hands.”
“ČGS 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,” Nilsson concluded.