Trelleborg completes purchase of liquid silicone specialist Baron Group

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

Headquartered in Melbourne, Baron group is “prominent Australian-Chinese" manufacturer of polymer/liquid silicone rubber (LSR) precision silicone components, according to Trelleborg.

To be integrated into Trelleborg Medical Solutions (TMS), the business will strengthen the group’s expertise in medical technology products, said a 17 July group statement.

In particular, the company is specialised in areas such as sleep apnea, respiratory care and pulmonary conditions. 

As previously reported by ERJ, Baron Group generated sales of SEK1 billion (€87 million) and 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, Trelleborg said at the time of purchase in February.

At the time, Trelleborg said the acquisition would provide it 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.”