Trelleborg CEO Peter Nilsson said the divestment was intended to focus the company on the healthcare and medical, automation and aerospace sectors. Photo: Trelleborg
Yokohama Rubber said on Friday it plans to pay 265.2 billion yen ($2.18 billion) for all outstanding shares in Sweden’s Trelleborg Wheel Systems, as the Japanese company moves to expand its international business.
The Swedish company makes and sells off-highway tyres (OHT) for agricultural and industrial machinery.
Trelleborg Group said the transaction was on a cash and debt free basis, which represents 13 times the business area’s 2021 operational earnings before interest, taxes, depreciation, and amortisation.
Less than 3% of the purchase price is subject to the performance of Trelleborg Wheel Systems in 2022, the Swedish company said.
Trelleborg chief executive Peter Nilsson said the divestment was intended to focus the company on the healthcare and medical, automation and aerospace sectors, as well as in specialty industrial applications.
“The divestment creates a more coherent portfolio with similar business models and drivers,” he said. “It improves our profitability and capital efficiency, while the transaction also reduces our cyclicality.”
Yokohama Rubber said the acquisition would contribute to the expansion of Yokohama Rubber’s OHT business, “which has positioned as a future growth driver for the company’s commercial tyre business”.
It said the purchase would also “open the door to new customers” for tyres, as about 30 of the 60-plus original equipment manufacturers supplied by Trelleborg would be new customers for Yokohama Rubber.
Volkswagen executive Stefan Mecha said the firm is committed to investing $16.26 billion in the…
The real estate firm was among many Chinese developers that defaulted last year as the…
The firm said it was now "out of crisis mode” following years of painful US…
The Cyberspace Administration of China said the move was aimed at protecting supply chains and…
Musk met Li Qiang in 2019 when he was party secretary in Shanghai. Sources say…
Increasing oil deals between the two countries have already begun to corrode the US dollar’s…