TRELLEBORG, Sweden -- Trelleborg Group has signed an agreement to divest its light vehicle brake hose operation, located in Brazil. The operation, which is part of the Trelleborg Automotive business area, is being acquired by French company Flexitech.

Trelleborg says the divestiture is a further step in the group’s strategy of focusing on select segments.

“This is a good solution,” said Jim Law, president of the Trelleborg Automotive business area. “This is the only operation in Trelleborg within this product area. It is a local operation in Brazil and the effort required to develop the business to the next level would require a major strategic shift. Accordingly, we have chosen to divest the operation to make way for other investments. “

Trelleborg Automotive has long had a major operation in Brazil in the area of anti-vibration for light vehicles, which the company says has performed extremely well. The divestment will enable further focus on this operation.

The divested business has annual sales of approximately SEK 140 M (approximately $21 million USD) and approximately 200 employees. All sales are in the Brazilian market.

The purchase consideration amounts to approximately SEK 65 M ($10 million). In addition to the purchase consideration, Trelleborg will retain assets primarily related to the infrastructure in an amount of approximately SEK 30 M ($4.5 million). The acquisition is dependent on the approval of the appropriate authorities and is expected to be completed during the first quarter of 2011.