LONDON (June 1, 2016) — Trelleborg A.B. has completed its $1.25 billion takeover of Czech rubber producer CGS Holding A.S., parent of tire maker Mitas A.S., with no major changes of personnel.
Contrary to what Tire Business reported earlier today — in a story picked up from European Rubber Journal — Mitas CEO Jaroslav Cechura and technical director Martin Hladik “will stay and support the integration of Mitas and Trelleborg,” said Karin Larsson, Trelleborg's vice-president media relations.
“They will be employed by Trelleborg as they have been by Mitas,” Trelleborg said.
ERJ, a London-based sister publication of Tire Business, had reported that Messrs. Cechura and Hladik were opting to leave the company, in part because Mitas is to be run from Trelleborg Wheel Systems' base in Tivoli, Italy, rather than Prague, Czech Republic.
Mitas will be integrated into the Trelleborg Wheel Systems business area, the Swedish group has stated. Other CGS operations are to be integrated more gradually into existing Trelleborg business units.
The Mitas brand will, however, remain, said Ms. Larsson adding: “In order to provide customers with the same level of service from both Trelleborg and Mitas, the salesforce will be organized by brand and will keep operating on their current product offering and channels/customers.”
Trelleborg finalized the acquisition on May 31.
Prague-based CGS, which also includes the Rubena and Savatech businesses, generated sales of about $680 million in 2015 with an operating margin of 16.5 percent.
Mitas accounted for 61 percent of group sales last year and has mid-market specialty tire brands with a particularly strong position in the agricultural sector. Rubena and Savatech offer niche engineered polymer businesses, including seals, molded products, printing blankets and other engineered fabrics.
Commenting on the transaction, Trelleborg CEO and President Peter Nilsson said that the company would “almost double its sales in agricultural tires, strengthen its leading position in industrial tires and add new positions in complementary specialty tires segments.”
Mr. Nilsson further added that Trelleborg is “convinced the agricultural market will recover, enabling us to benefit from an attractive footprint when it does.”
Following the acquisition, Trelleborg will have sales of about $3.6 billion, with about 23,000 employees in 47 countries. Non-recurring costs of approximately $8.5 million, related to the acquisition, will be charged to the second quarter of 2016.
This report appeared on the website of European Rubber Journal, a United Kingdom-based sister publication of Tire Business.