DARMSTADT, Germany—Trelleborg A.B. and Freudenberg Group are moving ahead with a plan under which Freudenberg will become sole owner of giant joint venture TrelleborgVibracoustic GmbH.
Freudenberg reached an agreement in principle with JV partner Trelleborg to acquire its 50 percent interest in the producer of anti-vibration products for the global automotive and commercial vehicle industries April 7, just three days after the companies announced that TrelleborgVibracoustic will be renamed Vibracoustic GmbH.
The transaction is subject to signing a final agreement and conditional upon the approval from relevant regulatory authorities. The deal is expected to be completed in the second quarter and would be effective Jan. 1, 2016.
Trelleborg said the acquisition of its half of the JV is based on an enterprise value of a little more than $2 billion. The company will receive about $7.7 billion in addition to a dividend of $1.6 billion it received in December, putting the total value of deal at approximately $9.3 billion.
About 10 percent of the purchase price is subject to TrelleborgVibracoustic's forecasted sales performance in 2016 and 2017, Trelleborg said. Because of that, the final value of the deal may be somewhat higher or lower than the equity value.