Trelleborg has finalized the acquisition of CGS Holding a.s., a deal worth roughly $1.3 billion (SEK 10.9 billion).
Headquartered in the Czech Republic, CGS includes the businesses Mitas, Rubena and Savatech. The company generated sales of approximately $674 million (SEK 5.6 billion) in 2015 with an operating margin of 16.5%.
Mitas accounts for approximately two-thirds of group sales and has strong mid-market specialty tires brands with a particularly strong position within agricultural tires. The offering of specialty tires is complemented by Rubena’s and Savatech’s niche engineered polymer solutions businesses, including seals, sealing profiles, specialty molded products, printing blankets and other engineered fabrics.
“It is highly gratifying to welcome CGS to the Trelleborg Group,” said Peter Nilsson, president and CEO of Trelleborg. “The company has long been on our list of interesting acquisitions. The acquisition means that Trelleborg will almost double its sales in agricultural tires, strengthen its leading position in industrial tires and add new positions in complementary specialty tires segments.”
Mitas will be integrated into the Trelleborg Wheel Systems business area. During the transition, other operations will be independent from Trelleborg’s existing operations before being gradually integrated into current business areas, the company said.
Following the acquisition, Trelleborg will have sales of about SEK 30 billion, with about 23,000 employees in 47 countries.
