STOCKHOLM, Sweden—Trelleborg A.B. closed two transactions in early July aimed at building the company's core operation.
It completed the sale of its 50 percent interest in joint venture Vibracoustic GmbH to Freudenberg and Co. K.G. on July 5 and finalized the purchase of Specialty Silicone Fabricators Inc. on July 1.
Freudenberg and Trelleborg have received all the necessary approvals from relevant authorities on the Vibracoustic deal, which was announced on April 7, making Freudenberg the sole owner of the large antivibration products business.
Freudenberg acquired full ownership of Darmstadt, Germany-based Vibracoustic, which recorded sales of more than $2.1 billion in 2015 and almost $1.8 billion the previous year, because it gives the company “more flexibility to continue developing and supporting Vibracoustic strategically and financially,” Freudenberg Group CEO Mohsen Sohi said.
Trelleborg sold its half of the joint venture, formed in July 2012 as TrelleborgVibracoustic, to allow the firm to focus on its strategy of bolstering its core operations, a spokeswoman at the Stockholm-based company said. The acquired venture was renamed Vibracoustic in April just before the sale was announced.
The value of the deal for Trelleborg was estimated at about $9.3 billion, with the company receiving a dividend of $1.6 billion last December and $7.7 billion after it completed the sale. Trelleborg said the transaction will result in a capital gain of about $4.6 billion.
Vibracoustic consists of Trelleborg's automotive and Freudenberg's corresponding antivibration solutions businesses. It employs about 9,400.
On the SSF acquisition, Trelleborg's Sealing Solutions group, one of five major businesses within Trelleborg, bought the Tustin, Calif.-headquartered business because it is a leading player in the high growth life sciences market in the U.S. with a strong reputation and a good track record, said Claus Barsoe, president of Trelleborg Sealing Solutions, headquartered in Fort Wayne, Ind., in the U.S.
A manufacturer of high precision silicone components for medical original equipment manufacturers, SSF has a solid base of original equipment manufacturer customers, which gives Trelleborg Sealing Solutions a strong platform for growth in the U.S., he said
SSF is headquartered in Tustin and has production facilities in Paso Robles, Calif.; Elk Rapids, Mich.; and Tustin. It recorded sales of about $39.1 million in 2015.
It focuses “on advanced, challenging applications and by providing support and value to the customer from initial design—a similar positioning and approach to Trelleborg,” Barsoe said.
An international manufacturer of high precision medical silicone goods, the company also offers complete assembly and packaging services for OEMs. It primarily serves and provides silicone-based combination medical products for the medical device and pharmaceutical industries.