London – Trelleborg has contacted ERJ regarding our report on the management set-up at Mitas, following its SEK10.9-billion (€1.17 billion) acquisition of the Czech tire maker.
Contrary to ERJ's report this morning Mitas CEO Jaroslav Cechura and technical director Martin Hladik "will stay and support the integration of Mitas and Trelleborg," said Karin Larsson, Trelleborg’s vice-president media relations. "They will be employed by Trelleborg as they have been by Mitas."
ERJ had received information that the two Mitas executives were to leave shortly after the acquisition, in part because Mitas is to be run from Trelleborg Wheel Systems’ base in Tivoli, Italy – rather than Prague.
Contacted about this information, yesterrday, Trelleborg told ERJ:“We have only just finalised the transaction and cannot comment on the future organisation and roles of individuals in any detail.”
Mitas will be integrated into the Trelleborg Wheel Systems business area, the Swedish group has stated. Other CGS operations are to more gradually integrated into existing Trelleborg business units.
The Mitas brand will, however, remain, said Larsson adding: “In order to provide customers with the same level of service from both Trelleborg and Mitas, the salesforce will be organised by brand and will keep operating on their current product offering and channels/customers.”
Trelleborg finalised the acquisition of Mitas parent company CGS Holding on 31 May.
Prague-based CGS, which also includes the Rubena and Savatech businesses, generated sales of about SEK5.6 billion in 2015 with an operating margin of 16.5 percent.
Mitas accounts for nearly two-thirds of group sales and has mid-market speciality tires brands with a particularly strong position within agricultural tires. Rubena and Savatech offer niche engineered polymer businesses, including seals, moulded products, printing blankets and other engineered fabrics.
Commenting on the transaction, Trelleborg CEO and president Peter Nilsson said that Trelleborg would “almost double its sales in agricultural tires, strengthen its leading position in industrial tires and add new positions in complementary speciality tires segments.”
“We are convinced the agricultural market will recover, enabling us to benefit from an attractive footprint when it does,” Nilsson further added.
Following the acquisition, Trelleborg will have sales of about SEK30 billion, with about 23,000 employees in 47 countries. Non-recurring costs of approximately SEK70 million, related to the acquisition, will be charged to the second quarter of 2016.