To acquire Brazilian business focusing on specially designed oil hoses for surface and deep-sea applications for the offshore oil and gas extraction industry .
Through its Trelleborg Engineered Systems (STO: TRELB) business area, Sweden's Trelleborg plans to acquire a business in the offshore oil and gas industry in Brazil from Veyance Technologies do Brasil Produtos de Engenharia Ltda., a subsidiary of Akron , Ohio-based Veyance Technologies Inc., an oil and gas services portfolio company of The Carlyle Group, Washington, D.C. The deal value is SEK 40 million (approximately US$6.30 million)
Veyance's Brazilian business focuses on specially designed oil hoses for surface and deep-sea applications for the strongly growing offshore oil and gas extraction industry in Brazil. Its primary asset is a plant in Santana de Parnaiba, close to SÃ£o 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 deal is expected to close in the first quarter of 2011, and will be followed by investments in supplementary production equipment. It is anticipated that production can commence gradually through the second half of 2011. Trelleborg will initially invest approximately SEK 25 million during 2011.
In November 2010, Trelleborg announced an investment in a new facility in MacaÃ©, north of Rio de Janeiro, for the manufacture of such items as subsea buoys for deep-sea applications. The group currently has 1,000 employees in Brazil and is established in technology development, production and sales in the country.