Swedish engineering firm Trelleborg AB has agreed to acquire Minnesota Rubber and Plastics from private equity firm KKR & Co Inc. for about $1 billion in cash, according to people familiar with the matter, Reuters reported today.

The deal is expected to expand Trelleborg's polymer and plastics business in North America when it closes before the end of this year, sources told Reuters.

Headquartered in Minneapolis, Minnesota Rubber and Plastics supplies engineered elastomers and thermoplastics to the medical, water, and industrial end markets. The company operates manufacturing facilities in the United States, China, and Mexico.

It expanded its manufacturing footprint to Europe when it bought Primasil Silicones in May of this year. A custom silicone rubber compounder, mixer, and manufacturer specializing in the medical, HVAC, and specialty industrial end markets, Primasil has facilities in Weobley, UK, and Mikulov, Czech Republic.

In 2021, Minnesota Rubber and Plastics bought Pawling Engineered Products Inc., a 75-year-old company based in Pawling, NY, that provides custom elastomeric inflatable seal and extrusion services.

KKR acquired Minnesota Rubber and Plastics from private equity firm Norwest Equity Partners for an undisclosed amount in 2018.

Stockholm-listed Trelleborg is a provider of high-end plastics and polymer used by companies across oil and gas, aviation, and construction. It has a market capitalization of about $6 billion, said Reuters. The acquisition comes as Trelleborg shares closed at an all-time high, added the news organization.