Trelleborg AB expects its 1 billion euro ($1.06 billion) acquisition of Minnesota Rubber & Plastics in the U.S. to give it significant growth momentum, "ticking all the boxes" in strategic priorities for the group.
At a Dec. 5 analyst day presentation in Stuttgart, Germany, the Swedish group said the acquisition, completed in October, supported a number of key priorities for its Trelleborg Sealing Solutions (TSS) business.
These, it said, included providing an elastomers production site in the U.S., expanding its footprint in Asia-Pacific and China and building further elastomer capabilities and intellectual property.
In addition, the acquisition will give a boost to what Trelleborg describes as its "speedboat" segments, which essentially provide organic growth of over 5 percent per year, especially in the food, beverage and health care segments.
"With the acquisition of Minnesota Rubber & Plastics and the upcoming divestment of the business area Trelleborg Wheel Systems, these fast-growing industries will comprise approximately 40 percent of group's total sales," Trelleborg noted in its latest financial statement.
The "game-changer" acquisition, Trelleborg noted, will also further balance TSS's regional sales, with Americas contributing 36 percent to the total revenue of the business unit. Europe and Asia contribute 42 percent and 21 percent to total TSS sales post-acquisition.
MR&P has its headquarters and innovation center in Plymouth, Minn., and operates eight manufacturing facilities globally.