Trelleborg acquires ‘prominent’ liquid silicone rubber company Baron Group

Trelleborg, Sweden – Trelleborg Group has announced the acquisition of ‘Australian-Chinese’ company Baron Group for a purchase price of $30 million (€28 million).

Trelleborg Sealing Solutions (TSS) signed the purchase agreement for the “prominent Australian-Chinese" manufacturer of polymer/liquid silicone rubber (LSR) precision silicone components.

The takeover will strengthen Trelleborg’s expertise in medical technology products, in areas such as sleep apnea, respiratory care and pulmonary conditions, said a 6 Feb group statement.

Baron Group generated sales of approximately SEK1 billion (€88.4 million) in 2023 with a margin “well in line with that of the Trelleborg Sealing Solutions business area.”

The privately held company has its head office and two manufacturing facilities in Australia, as well as two additional facilities in China.

The Australian manufacturing facilities are also active in “several attractive industrial segments” in addition to medical technology, according to Trelleborg.

The acquisition will provide Trelleborg with “substantially expanded manufacturing capacity” for injection moulding of silicone and plastics, along with increased global manufacturing capacity for LSR.

Furthermore, Trelleborg is strengthening its presence in Asia and Australia with the takeover, towards better meet customer needs for global partnerships.

“The acquisition of Baron Group marks a significant milestone in our ambition to build a comprehensive and complete healthcare & medical offering,” said president and CEO Peter Nilsson.

“We are convinced that this partnership will generate significant sales and production synergies,” the Trelleborg Group leader added.

While the purchase price is $30 million, Trelleborg said the seller “may also potentially receive an additional amount of conditional consideration of up to $100 million after three years… upon the company's performance.”

The transaction is expected to be finalised in the first half of 2024, subject to approval of relevant authorities.