Trelleborg Signs Agreement in Principle to Sell its Shares in TrelleborgVibracoustic to Freudenberg

Regulatory News:

Trelleborg has signed an Agreement in Principle with Freudenberg to sell its shares in TrelleborgVibracoustic to Freudenberg. The proposed transaction represents the conclusion of the communicated plan for Trelleborg’s exit from the joint venture.

The transaction is subject to signing of a final agreement and, thereafter, conditional upon the approval from relevant authorities. The transaction is expected to be completed in the second quarter of 2016 and would be effective as from January 1, 2016.

"TrelleborgVibracoustic has successfully integrated two global leaders within automotive antivibration solutions, and in the process delivered significant synergies, improved its footprint and strengthened its positions over the past years. Throughout this journey we have enjoyed great co-operation with Freudenberg,” says Peter Nilsson, President and CEO of Trelleborg.

The transaction is based on an enterprise value of EUR 1.8 billion for TrelleborgVibracoustic.

Trelleborg will receive a purchase consideration equivalent to an equity value of SEK ~6.8 billion, in addition to the dividend of SEK ~1.4 billion received in December 2015. This corresponds to a total value of SEK ~8.2 billion. Approximately 10 percent of the purchase consideration is subject to TrelleborgVibracoustic’s forecasted sales performance in 2016 and 2017. Consequently, the final consideration may be somewhat higher or lower than the above equity value.

The purchase consideration corresponds to approximately SEK 25 per Trelleborg share, and will result in a capital gain of SEK ~4 billion (approximately SEK 15 per Trelleborg share) of which the full amount will increase Trelleborg’s equity.

"I am certain that TrelleborgVibracoustic will continue to develop as the global market leader in its segment. The purchase consideration we will receive is in line with our expectations and represents a clean exit option. The transaction allows Trelleborg to further focus on its overall strategy aimed at developing leading positions in selected segments,” concludes Peter Nilsson.

TrelleborgVibracoustic is currently undergoing a process to change its name to Vibracoustic.

Telephone conference

Analysts, investors and media are invited to attend a telephone conference at 10:00 a.m. CET on April 7, 2016. Please see the separate invitation for details.

Trelleborg is a world leader in engineered polymer solutions that seal, damp and protect critical applications in demanding environments. Its innovative solutions accelerate performance for customers in a sustainable way. The Trelleborg Group has annual sales of SEK 25 billion in over 40 countries. The Group comprises five business areas: Trelleborg Coated Systems, Trelleborg Industrial Solutions, Trelleborg Offshore & Construction, Trelleborg Sealing Solutions and Trelleborg Wheel Systems. In addition, Trelleborg owns 50 percent of Vibracoustic, the global market leader within antivibration solutions for light and heavy vehicles, with annual sales of SEK 18 billion in about 20 countries. The Trelleborg share has been listed on the Stock Exchange since 1964 and is listed on Nasdaq Stockholm, Large Cap. www.trelleborg.com

This is information of the type that Trelleborg AB (publ) is obligated to disclose in accordance with the Swedish Securities Exchange and Clearing Operations Act and/or the Financial Instruments Trading Act. The information was issued for publication on April 7, 2016, at 7:45 a.m. CET.

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