WEINHIM, Germany (Dec. 22, 2011)—Freudenberg and Co. K.G. and Trelleborg A.B. have signed an agreement to form a 50/50 joint venture to make antivibration products for light and heavy vehicles. The deal is subject to the approval of the relevant competition authorities.
The two firms first announced a letter of intent in January 2011 to form the JV, which will include Trelleborg Automotive's antivibration operations and Freudenberg's Vibracoustic business.
“The signing of this agreement is a further step in our strategy to focus and strengthen Trelleborg in selected segments,” said company President and CEO Peter Nilsson. “The joint venture will be a global leader in antivibration solutions that will be able to offer the market's best geographical coverage and broadest product portfolio.”
Trelleborg said agreement has been reached on all points of principle, with only certain ancillary and transitional agreements to be finalized, which is forecast to be done this January. The transaction would then go before the relevant competition activities.
Sales for 2010 for the joint venture would have been an estimated $1.8 billion, with 8,100 employees in 17 countries.