Yokohama Rubber : Acquisition of Trelleborg Wheel Systems Busines
May 12, 2023 at 02:43 am EDT
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Acquisition of
Trelleborg Wheel Systems Business
May 12, 2023
Masataka Yamaishi
President, Chairman of the Board
Yokohama Medium-term Management Plan YX2023
Copyright(C) THE YOKOHAMA RUBBER CO., LTD.
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Yokohama Medium-term management plan YX2023: Tire Business Strategies
Global Tire Market
Consumer tires (PCR・MC）
Commercial tires
(TBR・OR・AG・ID・AC）
Turning consumer tires into
Exploitation
commercial tires
Exploration
B to B （to C）
Raise high value-added
tire sales ratio
ADVAN
GEOLANDAR
WINTER
Respond to market
changes
Cost
Product
Service
lineup
DX
Copyright(C) THE YOKOHAMA RUBBER CO., LTD.
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Objectives of Acquisition
Global market
Consumer tires
Commercial tires
TBR
OHT
２
: １
YRC
Consumer tires
Commercial tires
TBR
OHT
Raise high value-added
tire sales ratio
ADVAN
GEOLANDAR
WINTER
Respond to market
changes
Cost
Product
Service
lineup
DX
Copyright(C) THE YOKOHAMA RUBBER CO., LTD.
4
Outline of the transaction
Target company
Trelleborg Wheel Systems Holding AB (100％ of equity shares)
Corporate value
2,074 million EUR
The acquisition is based on the performance-based earnout method, with a maximum additional purchase price of 60 million euros.
On the basis of 2022 financial figures, the additional purchase price was fixed at approximately 34 million euros.
Sales
1,249 million EUR
(13,277 million SEK/ approx. 172.5 billion yen; FY2022 result)
EBITDA
218 million EUR
(FY2022 result, after adjustments)
EBITDA multiple
Approx. 9.5 times
(based on adjusted EBITDA)
Date of Acquisition agreement
March 25, 2022
Date of Acquisition finalized
May 2, 2023
Financing
Own funds from sale of cross-share holdings, etc., and borrowings from Mizuho Bank
We plan to refinance the loan from Mizuho Bank to a long-termfixed-rate loan with a low interest rate, taking advantage of our
strong financial position and relationships with banks.
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YRC - Yokohama Rubber Co. Ltd. published this content on 12 May 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 May 2023 06:42:11 UTC.
The Yokohama Rubber Company, Limited is one of the world's leaders in manufacturing and marketing tires. Net sales break down by activity as follows:
- production of tires (81.3%): for private vehicles, buses, heavy trucks, mining and civil engineering engines, etc.;
- manufacturing of polymer and rubber products (17.3%): high pressure pipes, conveyor belts, seismic products, marine hoses, aircraft products, golf products, etc.;
- other (1.3%).
Net sales break down geographically as follows: Japan (42.2%), Asia (14.6%), North America (26.6%) and other (16.6%).
THE YOKOHAMA RUBBER CO., LTD. 
