Trelleborg Group Divests Trelleborg Wheel Systems to Yokohama Rubber
April 6, 2022 - Trelleborg Group has signed an agreement to divest its Trelleborg Wheel Systems business to Yokohama Rubber Company for EUR 2,100 M on a cash and debt-free basis. The price represents 13x the business’ 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, the company has built a strong company in the off-highway business, said a Trelleborg news release.
The acquisition of Trelleborg Wheel Systems, enables Yokohama Rubber 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 two-wheels market segments with the addition of Trelleborg, Mitas, Maximo, Cultor, and Interfit brands.
Paolo Pompei, president of Trelleborg Wheel Systems, said, “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.”
Pompei added that he is excited to join a leading rubber company that will keep investing in the business.
Completion of the transaction is expected to be completed in the latter part of 2022, subject to approval from the relevant authorities. In the meantime, Trelleborg Group’s and Trelleborg Wheel Systems’ transaction teams will manage the company’s activities.