Trelleborg, Sweden – PU processor Trelleborg has sold its wheel systems division to Yokohoma Rubber Company for EUR2.1bn on a cash and debt-free basis.
Trelleborg rolls wheel systems to Yokohama
The division makes polyurethane and rubber tyres and wheel assemblies for off-road applications such as materials handling and agricultural machines.
It was sold for 13x its 2021 EBITDA. There will be an estimated capital gain of SEK6bn ($639m) when the deal closes in the second half of this year.
Peter Nilsson, Trelleborg’s CEO, said: 'Our ambition is to grow Trelleborg into the world's foremost engineered polymer solutions company in our selected industries.'
Those industries are healthcare & medical, automation and aerospace, as well as speciality industrial applications.
He added that the divestment makes 'Trelleborg more profitable, less cyclical and its sustainability profile improves'.
The company confirmed that there was interest in wheel systems in January, this year.
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