“It is highly gratifying to welcome CGS to the Trelleborg Group. The company has long been on our list of interesting acquisitions. The acquisition means that Trelleborg will almost double its sales in agricultural tyres, strengthen its leading position in industrial tyres and add new positions in complementary specialty tyres segments. CGS's engineered polymer solutions add new interesting positions as well as strengthen Trelleborg's existing leading positions in several of the Group's current business areas,” says Peter Nilsson, President and CEO of Trelleborg.

CGS Holding includes the businesses Mitas, Rubena and Savatech. Mitas accounts for approximately two-thirds of group sales and has strong mid-market specialty tyres brands with a particularly strong position within agricultural tyres. The offering of specialty tyres is complemented by Rubena's and Savatech's niche engineered polymer solutions businesses, including seals, sealing profiles, specialty molded products, printing blankets and other engineered fabrics.

“We are convinced the agricultural market will recover, enabling us to benefit from an attractive footprint when it does. Accordingly, we consider the purchase consideration to be attractive considering the expected synergies and the future recovery of the agricultural market,” concludes Peter Nilsson.

Mitas will be integrated into the Trelleborg Wheel Systems business area. During transition, other operations will be independent from Trelleborg's existing operations before being gradually integrated into current business areas.

Following the acquisition, Trelleborg will have sales of about SEK 30 billion, with about 23,000 employees in 47 countries.

The transaction will be consolidated from May 31, 2016. Non-recurring costs of approximately SEK 70 million, related to the acquisition, will be charged to the second quarter of 2016. Of this amount, about SEK 50 million will be charged against reported operating income and about 20 million will be charged to net financial items. No PPA effects are included in the above amounts.