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.

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

KKR acquired Minneapolis-based Minnesota Rubber and Plastics from private equity firm Norwest Equity Partners for an undisclosed amount in 2018. The company was founded in 1941 and produces high-grade plastic components used in cars, medical devices and telecommunications equipment, with manufacturing facilities in North America, Europe and Asia.

Minnesota Rubber and Plastics has acquired several smaller rivals under KKR's ownership. It bought Britain's Primasil Silicones in May and Pawling Engineered Products Inc, a Prawling, New York-based plastics firm, in 2021.

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.

The acquisition comes as Trelleborg shares trade close to an all-time high. The company clinched a deal earlier this year to sell its division that makes tyres for agricultural and industrial machinery to Yokohama Rubber Co for 265.2 billion yen ($2.18 billion), giving it capital for acquisitions and share buybacks.