TRELLEBORG, Sweden—Trelleborg A.B. is selling off a business in Norway that makes rubber products for the oil and gas industry.
"The operation mainly develops and manufactures rubber-based fire protection solutions and thermal insulation used in offshore oil and gas extraction," the company said in a statement.
Current management is being joined by what the company calls a "local partner" to make the purchase, Trelleborg said.
The decision follows a 2019 review of the business unit that determined divestment "was the best alternative for us and for this oil & gas operation," CEO Peter Nilsson said in a statement.
"It is therefore satisfying to communicate the transaction. At the same time, it must be emphasized that the other parts of the group that develop, manufacture and sell products and solutions for the oil and gas industry, are in niches where we want to continue to maintain a presence and where we hold leading positions. This mainly pertains to safety-critical seals, hose systems, bearings solutions and various safety solutions for (liquid natural gas)," Nilsson said.
The deal is expected to close during the second quarter and will not have a material impact on profits, Trelleborg said. Sales of the unit being sold were about $37 million in 2020.