TRELLEBORG, Sweden—Trelleborg A.B. has agreed to sell its Trelleborg Wheel Systems (TWS) business to Yokohama Rubber Co. Ltd. (YRC) for $2.3 billion in a cash and debt free basis.
The deal comes three months after speculation surfaced that the Japanese tire maker was interested in acquiring the Trelleborg unit, which generated $1.17 billion in sales last year on the sale of agricultural tires and wheels.
The transaction, which in effect will double the size of Yokohama Rubber's off-highway tire business, is set for completion "in the latter part of 2022" subject to regulatory approvals, the companies disclosed in separate announcements.