Trelleborg Group has signed an agreement to divest its Trelleborg Wheel Systems business area to Yokohama Rubber Company for 2,100 million euros ($2,307 million) on a cash and debt free basis, which represents 13x the business area’s 2021 operational EBITDA, or 17.5x 2021 EBIT.
Under Trelleborg’s ownership, Trelleborg Wheel Systems has during the past few years more than doubled in size and substantially increased its profitability, growing its business through important acquisitions and strategic investments, building a strong and attractive company in the off-highway business.
The acquisition of Trelleborg Wheel Systems, will enable Yokohama Rubber Company to consolidate its leading position among tire producers in the world, becoming a global leader in the off-highway segment, covering different market needs in the agricultural, construction, material handling, mining and 2 wheels market segments with the addition of Trelleborg, Mitas, Maximo, Cultor and Interfit brands to its portfolio.
Paolo Pompei, president of Trelleborg Wheel Systems, says, “Personally, I am extremely grateful to Trelleborg, which has over more than 100 years created one of the most successful off-highway businesses in the world, and which continuously invested in our growth and technological leadership.
"At the same time, I am really excited to join a leading rubber company that will keep investing in our future and support our successful onward journey. I am confident that we will continue to flourish with The Yokohama Rubber Co., Ltd. as a strong owner.”
Completion of the transaction is subject to the approval of the relevant authorities and is expected to be completed in the latter part of 2022. In the meantime, Trelleborg Group’s and Trelleborg Wheel Systems transaction teams will continue to manage the activities up till closing.
Rumors of Yokohama bidding on Trelleborg's Wheel System's business surfaced at the beginning of the year, when Tyrepress reported Yokohama Tire bid around $2 billion dollars for Trelleborg Wheels Systems, according to "sources close to the bid."