Trelleborg Acquires Mehren Rubber

Through its Engineered Systems business area, Trelleborg has signed an agreement to acquire Mehren Rubber A/S, with approximately 30 employees and annual sales of about SEK 65 million (US$9.1 million). The company is privately held and is located in Sande, Norway.

Mehren Rubber is a niche-oriented contract producer of downhole packers (oil/gas extraction equipment for sealing the area between the tubing and the wall of the wellbore) for Easywell, a global company within Halliburton that has entered the downhole packer market with great success. The main product, “Swell Packer,” uses the specific properties of rubber in projects requiring reliable and cost-effective zonal isolation technology. Swell Packer’s flexible rubber seal is a virtually organic solution to reduce or eliminate gas and water breakthrough.

“Mehren fits in well with our ambitions to expand in the offshore business,” says Lennart Johansson, president of Trelleborg Engineered Systems. “The products complete our current portfolio, and there are obvious organizational synergies.”

The acquisition is expected to be completed in the third quarter of 2006.

Trelleborg Engineered Systems has annual sales of approximately SEK 5.3 billion (US$742.9 million), with about 3,700 employees. Trelleborg is a global industrial group whose leading positions are based on advanced polymer technology and in-depth applications know-how. Trelleborg develops high-performance solutions that seal, damp, and protect in demanding industrial environments. The Trelleborg Group has annual sales of approximately SEK 24 billion (US$3.4 billion), with about 22,000 employees in 40 countries. Trelleborg consists of five business areas: Trelleborg Automotive, Trelleborg Wheel Systems, Trelleborg Engineered Systems, Trelleborg Building Systems, and Trelleborg Sealing Solutions.