HYOGO, Japan—Sumitomo Rubber Industries Ltd. finalized the divestment of its Swiss-based medical rubber parts subsidiary Lonstroff A.G.
The Japan-based group, therefore, has now transferred all shares of Aargau-headquartered Lonstroff and its 100-percent subsidiary Lonstroff Medical Elastomers in Slovenia to NCM Investments, a subsidiary of Dutch private equity fund Nimbus Investment Fund.
SRI acquired Lonstroff in 2015 as part a move to expand its global medical rubber parts business. In 2017, the group established a subsidiary in Logatec, Slovenia, to increase its European footprint.
SRI said that despite its efforts to improve productivity and product quality, short-term profitability declined due to a COVID-related delay in productivity improvement and a surge in raw material costs that followed.
The group, however, said that it believed that further business growth would be achieved under the new shareholder.
According to figures provided by SRI, the Swiss subsidiary was loss making for the three years to end of 2022.
