TRELLEBORG, Sweden—Trelleborg has finalized the divestment of its offshore operation in Skelmersdale, England, part of its strategy to focus on "selected market segments."
The company is part of the overall offshore operation in the Businesses Under Development reporting segment, Trelleborg said in a March 2 statement.
The buyers are individuals holding senior positions in the U.K. offshore business being sold. The divested company had annual sales of approximately $69 million in 2020. It was deconsolidated on March 1, 2021.
The transaction is not expected to have a material impact on the group's net profit, Trelleborg said. The company develops and manufactures products ranging from subsea buoyancy modules, which are used for offshore installations, to bend stiffeners, cable protection and bend restrictors, used to secure, guide and protect subsea cables from excessive movement.
The vast majority of its sales are to the offshore oil and gas segment.
Through this divestment, Trelleborg said it is reducing its exposure to the offshore oil and gas segment to approximately 3 percent of its total net sales.
"We are delighted to announce this transaction," said chief financial officer Fredrik Nilsson, who is responsible for the Businesses Under Development reporting segment. "It is well known that offshore oil and gas has faced a challenging market situation for some time. After evaluating the various strategic alternatives for this company, we came to the conclusion that divestment was the best option. Following this divestment, we will be further intensifying our focus on our core operations."
Other offshore operations in the Businesses Under Development reporting segment are not affected by this divestment, Trelleborg said.
"Trelleborg is, however, very hopeful that it will be able to end the strategic overview of the remaining parts of these offshore operations in the relatively near future," it said.