Trelleborg to buy Laird’s components

The Trelleborg Group has signed an agreement with Laird Group Plc to acquire the UK company’s automotive components (LAC).

LAC has annual sales of approximately SEK 2.8 billion, with slightly more than 3,000 employees at 16 production units in six countries, mainly in Europe.

The purchase price for LAC is approximately SEK 1.5 billion, corresponding to around 0.5 times the company’s sales, or five times its earnings before financial items and depreciation.

Following this acquisition, it is estimated that Trelleborg’s core operations will have annual sales of around SEK 16.5 billion, with some 15, 500 employees in 40 countries.

Cost-related synergies with Trelleborg’s existing operations in the automotive area are expected to be realised within a two-year period. A restructuring program to meet the costs of the integration work will be set up in connection with the acquisition. LAC will be placed in the Trelleborg Automotive business area under the management of George Caplea.

It is estimated that the Trelleborg Group’s earnings per share will be positively affected with approximately SEK 1:00 already in 2001.

The acquisition, which is subject to the approval of the competition authorities involved, is expected to be concluded early next year.

On the web at www.Trelleborg.com.