ERJ staff report (DS)
Stockholm, Weinheim -- Trelleborg and Freudenberg are discussing a merger of their automotive antivibration businesses into a 50-50 joint venture. The resulting business would be the global leader in antivibration solutions for light and heavy vehicles. The two companies have signed a letter of intent to that effect and have begun due diligence processes.
The two companies want to jointly develop and manufacture vibration control solutions for all automakers and all vehicle segments in all of the automotive industry's major regions worldwide.
The joint venture under discussion would consist of Trelleborg Automotive's operations in antivibration solutions and Freudenberg's corresponding activities under the Vibracoustic brand. Total annual sales would be approximately SEK 12 billion (Euro 1350 million), with 8100 employees in 17 countries.
The part of Trelleborg Automotive that will be included in the joint venture, relates to the antivibration business for light and heavy vehicles. It accounts for about 75 percent of sales in Trelleborg Automotive and has annual sales of approximately SEK 6,300 M and approximately 5,200 employees. Trelleborg Automotive's operations outside the area of antivibration are not affected.
Trelleborg said it had nothing more to add, apart from a press release issued as rumours of the deal emerged, and it wanted to clarify the situation
In the press release, Peter Nilsson, President and CEO of the Trelleborg Group said, â€œWith this joint venture, we form a global leader and a strong partner for our customers and create a platform for accelerated development and future growth. The companies' customer portfolios complement each other very well and Trelleborg's broad geographical presence is complemented by Freudenberg's broader product portfolio. This means that we will be able to offer automakers worldwide the best geographical coverage and the broadest product portfolio within antivibration solutionsâ€.
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Press release from Freudenberg
Press release from Trelleborg