GKN plc has announced that it has signed an agreement to acquire Stromag Holding GmbH.
Stromag, which will be integrated into GKN Land Systems division, is a leading engineer of industrial power management components. Its core products include hydraulic clutches, electro-magnetic brakes and flexible couplings serving end-markets including agricultural equipment, construction and mining machinery, renewable energy and the metal processing industry. The business is headquartered in Unna, Germany and has operations in Germany, France, USA, Brazil, India and China.
The acquisition cost comprises a cash consideration of €164 million for the equity and repayment of debt of €31 million. Closing of the transaction is expected during September 2011, subject to customary conditions and necessary regulatory approvals. The acquisition will be funded from the Group’s existing resources.
Andy Reynolds Smith, Executive Director, GKN plc, stated “The acquisition of Stromag is an important step in the implementation of the GKN Land Systems’ strategy to build a global leader in Industrial Power Management, extending our capability in electro mechanical components. In combination with our existing business, it will provide a strong platform to accelerate growth in existing markets, together with access to a number of attractive new industrial segments including renewable energy.”
Edited by: Paul Whittaker, Editor ipmd.net, [email protected]