Trelleborg has, through its business area Trelleborg Industrial Solutions, signed an agreement to acquire a 51-percent stake in the North American group Max Seal. Pursuant to specific terms and conditions of the agreement, Trelleborg has an option and intends to acquire the outstanding share in the company.
Max Seal develops and manufactures polymer-based sealing systems for various types of pipes deployed in water and wastewater systems. The business transaction will create a leading position in North America, while complementing Trelleborg’s existing range and presence in the U.S. It will also provide access to the rapidly growing markets in Latin America.
The business has its main facility in Tijuana, Mexico, and a sale company in the U.S. Net sales in 2013 amounted to approximately SEK 80 M. The joint venture is part of Trelleborg’s strategy to strengthen its positions in attractive and profitable market segments.
“This jointly owned company provides us with a broader customer base, an excellent combination of a competitive product mix and improved geographic presence. Trelleborg commands a strong position in pipe seal systems in the European market and we can now offer our customers enhanced global support, which will create new potential for expansion. Max Seal has extensive experience in the field of pipe seals and is highly regarded, with leading-edge expertise particularly in product development and manufacturing of molded seals, which we will be able to leverage in other parts of our operations,” says Mikael Fryklund, President of the Trelleborg Industrial Solutions business area.
The transaction is expected to be finalized during the first quarter of 2014.