Trelleborg finalises acquisition of Minnesota Rubber & Plastics

Trelleborg Group has finalised the acquisition of the US-based company, Minnesota Rubber & Plastics, for $950 million on a cash and debt free basis.

If a tax asset of approximately $90 million is taken into account, the purchase price amounts to approximately $860 million. The seller is an affiliate of the global investment firm KKR. 

Minnesota Rubber & Plastics is a well-established company in North America operating in several fast-growing industries such as medical equipment, water management and food & beverage, as well as in several industrial applications. The company is a manufacturer of engineered polymer and thermoplastic components and a system provider for technically demanding applications. 

Peter Nilsson, president and CEO of Trelleborg Group, said: “This is a step change for Trelleborg Sealing Solutions. The business area will be as strong in North America as its already established position in Europe.” 

The company has annual sales of approximately SEK 2,250 million with good profitability and strong sales growth. It has its headquarters and innovation centre outside of Minneapolis, Minnesota, US, and has a total of eight manufacturing facilities globally, of which four are in the US and the remainder in Mexico, England, the Czech Republic and China. 

The acquisition of Minnesota Rubber & Plastics is fully financed with the help of a bridge loan that runs until the settlement for Trelleborg Wheel Systems is obtained. This entails that the net interest income will temporarily be burdened with higher financial costs until the divestment of Trelleborg Wheel Systems is completed. 

Purchase price allocation attributable to the acquisition is ongoing and will be communicated upon its completion. 

The transaction will be consolidated as of October 27, 2022.