Trelleborg Sealing Solutions has entered into an agreement to purchase Silcotech Group’s business, which produces liquid silicone parts and precision seals for the medical and pharmaceutical industries. These products are also utilized in vital applications of the electronics industry.
Trelleborg Sealing Solutions will invest SEK 300 million for the acquisition, which is anticipated to be completed in the Q2 of 2011. The private company, Silcotech Group, has a production plant in Stein am Rhein in Switzerland and operates facilities in Huizhou in southern China and Pernik in Bulgaria through joint venture.
According to the acquisition deal, Trelleborg Sealing Solutions will purchase 100% of the Switzerland operations and 50% of the joint venture operation in Bulgaria. The deal has provisions to buy the remaining share and to purchase the majority stock of the Chinese joint venture.
The President of Trelleborg Sealing Solutions, Claus Barsøe, stated that the purchase expands the company’s products and strengthens the company’s position in the niche life science market. The acquisition allows Trelleborg to deliver Silcotech’s products to its current customers through sales cooperation and expand production activities via joint technology synergies.
Source: http://www.trelleborg.com