Trelleborg says Minnesota Rubber & Plastics deal a ‘game-changer’

Stuttgart, Germany – Trelleborg AB expects its €1-billion acquisition of Minnesota Rubber & Plastics (MR&P) in the US to give it significant growth momentum, ‘ticking all the boxes’ in terms of strategic priorities for the group.

Ata 5 Dec analyst day presentation in Stuttgart, 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 US, expanding 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% per year.

With the addition of MR&P, Trelleborg said it will accelerate 'speedboat' activities in the food, beverage & water industry as well as in the healthcare & medical segment.

In a capital markets day presentation in December 2021, Trelleborg announced that approximately one-third of its total sales were in this high-growth category.

“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% of group’s total sales,” said its latest statement. 

The "game-changer" acquisition, Trelleborg noted, will also further balance TSS’s regional sales, with Americas contributing 36% to the total revenue of the business unit. Europe and Asia contribute 42% and 21% to total TSS sales post-acquisition.

MR&P has its headquarters and innovation centre outside of Minneapolis, Minnesota, and operates eight manufacturing facilities globally.