TRELLEBORG, Sweden (March 31)—Trelleborg A.B. is selling its Goodall Rubber Co. hose distribution subsidiary to Lewis-Goetz & Co. Inc., a Pittsburgh-based hose, belting and seals distributor, for about $25 million.
Goodall, which sells and distributes hoses and hose connectors in the U.S. and Canada, generated sales of nearly $87 million last year with slightly more than 400 employees. Trelleborg had owned the onetime manufacturer of rubber hose since 1986. The sale is expected to close in April.
The company said Goodall had limited opportunities for synergies with Trelleborg and its operations in the long term don´t fit with the firm´s core operations and financial targets.
Trelleborg said it expects to book a capital loss of approximately $5.6 million after tax on the sale.
Goodall has been involved in certain product-related asbestos lawsuits since the 1990s, Trelleborg said. The responsibility for these lawsuits, as does the insurance coverage, remains with Trelleborg. No lawsuits have had, or are expected to have, more than a marginal impact on Trelleborg.
Lewis-Goetz reported sales of $90 million in 2004.