STOCKHOLM (Reuters) -- Industrial rubber firm Trelleborg said today it had agreed in principle to sell its 50 percent stake in TrelleborgVibracoustic to joint venture partner Freudenberg Group.
The deal values the whole of TrelleborgVibracoustic at 1.8 billion euros ($2 billion), including debt, Trelleborg said.
Last year, Trelleborg and Freudenberg started preparations for an initial public offering (IPO) for TrelleborgVibracoustic, a Germany-based maker of automotive vibration control technology.
But sources told Reuters in January Trelleborg was in talks to sell its stake to buyout group KKR.
Trelleborg said the deal with Freudenberg was expected to be completed in the second quarter of this year.
"The purchase consideration corresponds to approximately SEK 25 per Trelleborg share, and will result in a capital gain of 4 billion Swedish crowns ($491 million)," Trelleborg said in a statement.
The supplier said it would receive a purchase consideration equivalent to an equity value of 6.8 billion crowns, in addition to the dividend of 1.4 billion crowns it received in December 2015.
Trelleborg said around 10 percent of the purchase consideration was subject to TrelleborgVibracoustic's forecast sales performance in 2016 and 2017.
"Consequently, the final consideration may be somewhat higher or lower than the above equity value," Trelleborg said.