Sweden-based engineering group Trelleborg said Monday it had signed an agreement and finalized the divestment of its offshore oil and gas operation in Skelmersdale, England.
"The company is part of the overall offshore operation in the Businesses Under Development reporting segment. The buyers are individuals holding senior positions in the U.K. offshore business being sold. The divestment is part of Trelleborg’s strategy to focus on selected market segments," Trelleborg said.
According to Trelleborg, the divested company had annual sales of approximately SEK 580 million (around $68,56 million) in 2020.
The company Trelleborg sold develops and manufactures products ranging from subsea buoyancy modules, which are used for offshore installations, to bend stiffeners, cable protection and bend restrictors, used to secure, guide and protect subsea cables from excessive movement.
The vast majority of its sales are to the offshore oil and gas segment.
"Through this divestment, Trelleborg is reducing its exposure to the offshore oil & gas segment to approximately 3% of its total net sales," Trelleborg said.
"We are delighted to announce this transaction. It is well known that offshore oil & gas has faced a challenging market situation for some time. After evaluating the various strategic alternatives for this company, we came to the conclusion that divestment was the best option. Following this divestment, we will be further intensifying our focus on our core operations,” says Fredrik Nilsson, Chief Financial Officer with overall responsibility for the Businesses Under Development reporting segment.
"Other offshore operations in the Businesses Under Development reporting segment are not affected by this divestment. Trelleborg is however very hopeful that it will be able to end the strategic overview of the remaining parts of these offshore operations in the relatively near future," the company said.