Swedish company, Trelleborg have signed an agreement to purchase CGS Holding, a major Czech manufacturer. 

CGS employs approximately 6,300 people with Trelleborg employing a further 16,500.

Head quartered in Prague, CGS specialise in rubber and metal parts, primarily tyres and exhausts for the automotive industry.

The company had a turnover of approximately €100 million in the first nine months of 2015. It is the largest manufacturer of rubber products in the Czech Republic.

Trelleborg CEO, Peter Nilsson said the acquisition strengthens and complements his company’s leading position in a number of areas.

The deal is said to be worth €1.15 billion, and with the combined groups Trelleborg will employ nearly 23,000 people.

The transaction will be subject to approval from the relevant competition authorities. It is expected to be completed at some stage next year according to the CGS website.