TIVOLI, Italy—Trelleborg Wheel Systems S.p.A. has taken another step in expanding the company's base in South America's industrial tire sector.
A business unit of Stockholm, Sweden-headquartered Trelleborg A.B., Trelleborg Wheel Systems has purchased Standard Tyres Group, an industrial rubber tire manufacturer in Brazil. Financial details were not disclosed.
According to Trelleborg, the acquired business, which was privately held, is the market leader in industrial tires in Brazil and the main supplier to locally based global original equipment manufacturers of material handling vehicles.
Standard Tyres sales in 2014 came in at about $11.5 million.
“Brazil has the largest material handling vehicles market in South America, with all major OEMs represented in the country,” according to Maurizio Vischi, president of Trelleborg Wheel Systems.
He said the acquisition not only provides the company with access to the OEM market in the region, “but it also strengthens Trelleborg as a global supplier of solid tires to major global OEMs. In addition, the acquisition will facilitate the expansion of sales into the rest of South America.”
Trelleborg Wheel Systems has had a presence in Brazil for many years selling industrial, agricultural and forestry tires, a Trelleborg spokeswoman said.
Based in Tivoli, Trelleborg Wheel Systems' latest purchase “is strategically important but comparably small” in relation to the total revenues of the business, she said.
Standard Tyres' primary market will remain focused on OEM material handling vehicles, she said.
It employs about 100, spread between its headquarters in Lorena, Brazil, and its tire manufacturing facility in Feira de Santana. “We do not see any major changes regarding employees and management,” according to the spokeswoman.
Trelleborg Wheel Systems has been growing steadily via acquisitions in the last year. In November, it agreed to buy CGS Holding a.s. and three subsidiaries for about $1.25 billion, which virtually will double the business unit's revenues once the deal is finalized in the first half of 2016.
Subsidiaries that are part of the deal are Mitas a.s., Rubena a.s. and Savatech d.o.o. Mitas is a leading global manufacturer of agricultural, industrial and specialty tires. Rubena and Savatech develop and manufacture a broad range of engineered polymer products.
In April, Trelleborg purchased Armstrong Tyres, an Australian agricultural tire service and distribution firm. In February, the company bought industrial tire distributor D.G. Manutention Services S.A.S. to bolster its presence in France.