NEW BOSTON, Mich. (Jan. 13, 2011)—Flexitech Holdings has purchased the Brazilian brake hose operations of Trelleborg A.B. for about $9.7 million.
Sweden-based Trelleborg said the deal will allow it to focus on other business segments as the Brazilian unit was the company's only brake hose business. “It is a local operation in Brazil, and the effort required to develop the business to the next level would require a major strategic shift,” said Trelleborg Automotive President Jim Law.
The Sau Paulo-headquartered business posted annual sales of about $21 million—all in the Brazilian market—and employed slightly more than 200. The purchase is expected to be completed during the first quarter, dependent on obtaining approvals from the appropriate authorities.
Flexitech said the deal will increase its global presence and share of the brake hose market.
The firm, with a U.S. base in New Boston, in 2009 established a licensing agreement with Trelleborg's Getoflex unit for the local assembly of the Flexitech hose line in South America. “The integration of both companies will take place immediately” after the acquisition is finalized,” said Chris Carmody, Flexitech director of sales for the Americas.
Trelleborg's brake hose operations will be renamed Flexitech do Brazil, and be a wholly owned subsidiary of Flexitech Holding S.A.S.
Flexitech posts annual sales of $150 million and employs 850 worldwide.