Trelleborg, Sweden – Trelleborg AB is progressing plans for a possible initial public offering (IPO) of Trelleborg Vibracoustic – its 50-50 joint venture with Freudenberg for automotive anti-viberation parts.
Peter Nilsson, chief executive officer of Trelleborg AB said in June that the company was planning for a potential IPO of Trelleborg Vibracoustic GmbH in Germany.
Speaking to ERJ, a company spokesman said that all the “internal and legal matters associated with the IPO are begin done. So it would be a matter of pressing a button if we were to go with that option.”
On what will happen next, another Trelleborg official said: “Trelleborg will eventually, most likely, step down as owner of Trelleborg Vibracoustic, but we have not communicated when this will happen and how it will be done.”
A spokesman from Trelleborg Vibracoustic confirmed that the pre-IPO activities were being completed both at Trelleborg and Freudenberg.
“Three options were mentioned in the initial JV agreement. One was an IPO, another one was for it to remain as a JV and the third one was for one side to sell its shares to the other side,” he told ERJ. He said no timetable has been given for the final decision.
Meanwhile, Trelleborg announced on 21 July that the Trelleborg Vibracoustic joint venture outperformed the underlying market, the Swedish company said in s financial results statement for second quarter 2015
Sales increased for all business areas, said Trelleborg, adding that Trelleborg Vibracoustic joint venture was impacted mainly by positive currency effects and acquisitions made.
The JV’s operating profit in the quarter, excluding items affecting comparability, increased 20 percent and amounted to €47.3 million.
Trelleborg AB also posted its highest quarterly sales rate in second quarter 2015, with a 14-percent rise compared to the same period in 2014.
Net sales figures rose to SEK 6.5 billion (€692 million) from SEK 5.7 billion in 2014, said Trelleborg in a statement.
Operating profit, excluding the participation in Trelleborg Vibracoustic and items affecting comparability, rose 10 percent to SEK 883 million from SEK 802 million the previous year, marking the group’s highest operating profit to date for a single quarter.