Trelleborg Expands Manufacturing Presence in Australia & China with M&A

Trelleborg Group is strengthening its manufacturing position in Australia and China with the proposed acquisition of Baron Group.

The deal, which is set to close in the first half of this year, would be for $300 million with an additional amount of conditional consideration of up to $100 million.  The deal is being handled through the Trelleborg Sealing Solutions business.

Baron Group is focused on the manufacturing of advanced precision silicone components. Trelleborg said the acquisition would add application expertise; and manufacturing capacity, and would position the Group as a global partner for medical technology products. These areas include sleep apnea, respiratory care, and chronic obstructive pulmonary disease (COPD).

Baron Group generated sales of about SEK 1,000 M in 2023 with a margin well in line with that of the Trelleborg Sealing Solutions business area, the company said. The private 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.

“The acquisition of Baron Group marks a significant milestone in our ambition to build a comprehensive and complete healthcare & medical offering,” Peter Nilsson, president and CEO of Trelleborg Group. “The company's complementary culture and similar working methods make Baron Group an excellent addition to Trelleborg's existing offerings. We are convinced that this partnership will generate significant sales and production synergies.”

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