Trelleborg has signed an agreement to acquire a Brazil-based business in the offshore oil and gas industry from a subsidiary of Veyance Technologies Inc. The business focuses on specially designed oil hoses for surface and deep-sea offshore oil and gas extraction.
"This represents a step in our quest to strengthen our presence in Brazil in the offshore oil/gas industry," said Lennart Johansson, President of the Trelleborg Engineered Systems business area. "The acquired operation complements our current technology in oil hoses and is thus an excellent addition to our product portfolio, globally as well as in Brazil. Our customers are moving more and more of their production to Brazil and it is crucial to ensure that we have manufacturing close to their units."
The plant is located in Santana de Parnaiba, close to São Paulo. Trelleborg will take over the lease on the facility, which is 15,000 m2, acquire the existing equipment and assume responsibility for the some 100 employees.
The acquisition is expected to be finalized in the first quarter of 2011, and will be followed by investments in supplementary production equipment. It is anticipated that production can commence gradually as of the second half of 2011. The purchase consideration is approximately SEK 40 M and Trelleborg will initially invest approximately SEK 25 M during 2011. A successive positive earnings effect is forecast from the second half of 2012.
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