Freudenberg and Trelleborg Consider Cooperation in Automotive Antivibration

WEINHEIM, Germany - Freudenberg Group and Trelleborg Group today signed a Letter of Intent regarding a potential cooperation of Vibracoustic and the respective Trelleborg automotive antivibration businesses. The companies have agreed to consider a 50-50 joint venture.

The two companies want to jointly develop and manufacture vibration control solutions for all automakers and all vehicle segments in all of the automotive industry's major regions worldwide. The advantage of this joint venture would be a broad global presence. From a strong base in North America and Europe, both companies would benefit from growth potential particularly in Asia and South America. The core regions in which the partners operate would be complementary; thereby creating a global player for vibration control technology products with a presence in North America, South America, Europe and Asia.

Growth potential could be optimized to the full through the cooperation because the new joint venture would operate as a supplier for all vehicle classes.

In this new joint venture, with potential combined annual sales of around €1.2 billion and 8,100 associates in 17 countries, Freudenberg, through its subsidiary Vibracoustic would benefit from its partner's global locations which complement Vibracoustic's existing sites. Vibracoustic's high development expertise and outstanding customer contacts would provide an ideal basis for harnessing growth potential.

Any cooperation between the two companies is of course conditional upon the fulfillment of certain conditions and approval by the anti-trust authorities. Currently a process of due diligence is underway.