Trelleborg Group announced on February 14, 2024 that the healthcare & medical operations in the Trelleborg Sealing Solutions business area, including the agreed acquisition of Baron Group, will form the new Trelleborg Medical Solutions business area. The new organization will take effect on April 1, 2024 and will be reflected in Trelleborg’s first-quarter 2024 report, which will be published at 1:00 p.m. CET on April 24.

Pro forma annual sales for the new Trelleborg Medical Solutions business area amounts to approximately SEK 3.6 billion, including the agreed acquisition of Baron Group. The business area’s long-term target is to reach sales in excess of SEK 5 billion. The sales target is expected to be achieved through healthy organic sales growth and continued acquisitions. Trelleborg Medical Solutions will offer one of the broadest and most global portfolios in the market of polymer-based solutions for both medical technology and biopharma, which is expected to contribute positively to organic growth.

Trelleborg Medical Solutions’ EBITA margin will reach a run rate of approximately 20 percent when the agreed acquisition of Baron Group has been implemented. In recent years, significant investments have been made within the organization to leverage the potential offered by the market. While these investments in the organization have temporarily impacted the margin, new products and customer relationships have been developed in parallel. Over time, the investments are expected to positively impact both growth and profitability. Further profitability improvements will be delivered as synergies from previous acquisitions continue to be realized.

The Trelleborg Sealing Solutions business area has annual sales of approximately SEK 16.5 billion. The organizational change will have a minor positive effect on the EBITA margin. As previously announced, the margin has been impacted by major acquisitions with initially lower margins. In addition, investments in the organization in a number of fast-growing market segments, such as aerospace and semiconductors, have temporarily dampened profitability. The addition of resources combined with the realization of acquisition synergies is expected to contribute to a positive margin development in the long term.

The Trelleborg Industrial Solutions business area will not be affected by the new organization.

Historical sales and earnings figures for Trelleborg Medical Solutions and Trelleborg Sealing Solutions have been restated and are attached to this press release. They are also available on Trelleborg’s website. The historical figures are not audited and may therefore be adjusted in future reports.