Trelleborg is a leading global supplier of industrial tyres.

Trelleborg has signed an agreement to acquire CGS Holding a.s., a Czech supplier of agricultural, industrial and specialty tyres.

The acquisition is subject to approvals from relevant authorities and is expected to be completed in the first half of 2016.

Peter Nilsson, president and CEO of Trelleborg, sees the acquisition as "a significant and attractive add-on to our existing businesses".

"CGS, with its strong and favourably performing operations in agricultural and industrial tyres as well as engineered polymer solutions, will strengthen and complement Trelleborg's already leading positions in a number of existing areas."

With the acquisition of CGS and its subsidiary Mitas, Trelleborg is establishing itself as a global leader in agricultural tyres and reinforcing its position in the industrial market.

The deal is expected to double the revenues of Trelleborg Wheel Systems, broaden its geographical reach and add new positions in complementary tyre niches.

"CGS highly complements our manufacturing footprint with well-invested and competitive production facilities in Central and Eastern Europe, the US and Mexico," Nilsson adds. "The transaction adds to our capabilities, represents a strong strategic fit and is expected to generate significant synergies and cross-selling opportunities.

"The plan is to gradually integrate the acquired entities into Trelleborg's existing business areas," Nilsson explains.