Trelleborg to acquire Minnesota Rubber & Plastics

Trelleborg Group has signed an agreement to acquire the US–based company, Minnesota Rubber &
Plastics, for USD 950 million (approximately SEK 9.5 billion) on a cash and debt free basis. If a tax
asset of approximately SEK 900 million is taken into account, the purchase price amounts to
approximately SEK 8.6 billion. Trelleborg has secured committed financing. The seller is an affiliate
of the global investment firm KKR.
Minnesota Rubber & Plastics is a strong and 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 leading manufacturer of
polymer and thermoplastic components and a system provider for technically demanding
applications.
“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,” says Peter Nilsson, President and CEO of
Trelleborg Group.
“Minnesota Rubber & Plastics complements and strengthens Trelleborg’s current position and
product offering in a number of fast–growing industries. The company is a very good fit with our own
business within precision seals, and the transaction is expected to generate significant synergies in
terms of lower costs and higher production efficiency. Minnesota Rubber & Plastics will gain access
to Trelleborg’s global sales channels, and it will be able to offer our wider range of seals to its
existing customer base in North America. All in all, this is expected to lead to extensive cross–selling
opportunities,” continues Peter Nilsson.
“Minnesota Rubber & Plastics is well–known to us for being an innovative and customer–oriented
company. The acquisition makes us the natural development partner for sealing solutions for both
local and global customers. The company’s new state–of–the–art innovation center enables
accelerated product development and strengthens us in R&D and areas such as healthcare &
medical,” says Peter Hahn, President of the Trelleborg Sealing Solutions business area.
Minnesota Rubber & Plastics was founded in 1945 and has annual sales of approximately
SEK 2,250 M with good profitability and strong sales growth. The company has its headquarters and
innovation center 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.
“Initially, the EBITA margin of Trelleborg Sealing Solutions will be slightly diluted. However, as we
extract synergies, the business area’s EBITA margin is estimated to be back at its current level
within a couple of years. We therefore expect that the acquisition multiple will gradually drop to
approximately 10x EBITDA including synergies. We have a very good history when it comes to
value–creating acquisitions within Trelleborg Sealing Solutions,” concludes Peter Nilsson.
The transaction is expected to be finalized before year–end 2022.