TRELLEBORG, Sweden (Jan. 17, 2011)—Trelleborg A.B. and Freudenberg & Co. K.G. have signed a letter of intent to combine their automotive antivibration businesses into a 50-50 joint venture.
The company resulting from the merger would have annual sales of about $1.6 billion, employ 8,100 in 17 countries and be the largest manufacturer in its field. The firms said they have begun the due diligence process, and the cooperation requires the fulfillment of certain conditions and antitrust approvals.
Sweden's Trelleborg and Germany's Freudenberg said the joint venture would bring about a global presence, and the firms want to jointly develop and make vibration control solutions for all auto manufacturers, all types of vehicles in ever major auto industry region in the world—North America, South America, Europe and Asia.
If completed, the joint venture will include Trelleborg Automotive's antivibration operations and Freudenberg's corresponding Vibracoustic business.
The part of Trelleborg Automotive that will be included in the joint venture, relates to the antivibration business for light and heavy vehicles. It accounts for about 75 percent of Trelleborg Automotive's, about $938 million, and has approximately 5,200 employees, Trelleborg said. Trelleborg Automotive's operations outside the area of antivibration are not affected.
Vibracoustic had sales of $547 in 2009, and employed 2,500 in 23 locations. The firm's products are supplied to all the leading automotive manufacturers, Freudenberg said.