Trelleborg in €1.1bn swoop for Mitas

Trelleborg, Sweden - Trelleborg is to acquire ?GS Holding, owner of Czech-based agricultural and speciality tire-maker Mitas for around SEK10.9 billion (€1.1 billion), Trelleborg announced 9 Nov.

Headquartered in the Czech Republic, privately-owned ?GS generated sales of about SEK5,525 billion in the 12-months to 30 June, 2015, with a corresponding EBIT-margin of 16 percent.

The transaction is subject to approvals from relevant competition authorities, but is expected to be completed in the first half of 2016.

?GS, which is the parent company of Mitas tires, has strong operations in agricultural and industrial tires as well as engineered polymer solutions.

The deal, said Trelleborg CEO Peter Nilsson, will strengthen and complement Trelleborg’s positions in a number of existing areas.

“The plan is to gradually integrate the acquired entities into Trelleborg’s existing five business areas,” he said, adding that the purchase price was attractive given the synergy potential and expected turnaround for the agricultural market.

With the acquisition of ?GS and its subsidiary Mitas, said Nilsson, Trelleborg is establishing itself as key player in agricultural and industrial tires.

The company added that the acquisition would help it “almost double” its revenues while broadening its geographical reach and adding new niche positions in the tire market.