Stockholm - Trelleborg Group has agreed to buy US polymer-coated fabrics maker Reeves Brothers Inc. for SEK1300 million in cash.
The acquisition from a group of investment funds is expected to be completed during the fourth quarter of 2006 after which the South Carolina-based company will be integrated into Trelleborg's engineered systems division.
Reeves manufactures polymer-coated material in rubber, silicon and polyurethane at four production units - in Italy, China and two in US.
"The acquisition is another step in our strategy of growing in profitable industrial segments", Peter Nilsson, president and CEO of Trelleborg, said.
"Reeves' areas of operation are based on precision material that satisfy high demands for reliability, robustness and elasticity, which means that they correspond well with Trelleborg's core competencies - to seal, damp and protect in demanding industrial environments. With printing blankets, the acquisition opens a new and growing market segment for us, while also generating synergies in existing operations. As a result of the acquisition, the Trelleborg Group's structure is further improved."
Lennart Johansson, president of Trelleborg's engineered systems unit, said Reeves' operating margin is higher than of his division.
"Reeves provides us with a strong platform with excellent geographical cover - we gain a leading position in the US and establish ourselves in a rapidly growing market in China while consolidating operations in Europe and creating favourable synergies," he said.