Trelleborg acquires operations within Silcotech Group to strengthen its position in precision seals for life science

Trelleborg has through its Sealing Solutions business area signed an agreement to acquire operations within Silcotech Group, with total sales of slightly more than SEK 200 million and some 150 employees. The operation focuses on precision seals and components in liquid silicone, primarily for the pharmaceutical industry and medical technology sector. However, it is also used in certain critical electronic applications.
Claus Barsøe, President of the Trelleborg Sealing Solutions business area, said the firm has assigned priority to growth in life science and Silcotech is one of the leading companies in its niche segment. Barsoe said the acquisition strengthens Trelleborg’s product portfolio and improves its position in this area.

Barsoe further stated that the move also provides good potential for synergies in terms of sales, enabling Trelleborg to almost immediately offer Silcotech’s solutions to certain existing customers, and in relation to manufacturing through mutual technology synergies.

According to Barsoe, the addition of Silcotech expands Trelleborg’s know-how in clean room manufacturing of silicon components for the pharmaceutical and medical technology sectors in a highly automated environment. The staff of Silcotech adds a strong competence base, which will play a crucial role in Trelleborg’s future global ambitions in life science, said Barsoe.

The purchase consideration amounts to around SEK 300 million and the acquisition is expected to be finalized during the second quarter 2011. The Silcotech Group is privately owned and has a manufacturing operation in Stein am Rhein in Switzerland and joint venture operations in Pernik, Bulgaria and Huizhou, in southern China. The acquisition encompasses the entire operation in Switzerland, including the plant, and 50 per cent of the joint venture in Bulgaria, with an option to acquire the remaining share, and an option to acquire the majority share of the joint venture in China.

Trelleborg is a global industrial group whose leading positions are based on advanced polymer technology and in-depth applications know-how. Trelleborg develops high-performance solutions that seal, damp and protect in demanding industrial environments. The Trelleborg Group had annual sales during 2010 of approximately SEK 27 billion, about EUR 2.5 billion with about 20,000 employees in 40 countries.

The Group comprises four business areas: Trelleborg Engineered Systems, Trelleborg Automotive, Trelleborg Sealing Solutions and Trelleborg Wheel Systems. The firm’s head office is located in Trelleborg, Sweden.

The Silcotech Group is a multinational liquid silicone molding company where proven expertise, innovation and added value are key success factors.

29th March 2011

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