GKN plc has announced its agreement to acquire the all-wheel-drive (AWD) components businesses of Getrag KG. The businesses being acquired, together referred to as “Getrag Driveline Products”, are Getrag Corporation, a joint venture with Dana Corporation based in the United States, and Getrag All Wheel Drive AB, a joint venture with Dana Holding Corporation and Volvo Car Corporation based in Sweden.
The core business of Getrag Driveline Products is the Tier 1 supply of geared driveline products, namely Power Transfer Units (PTU) and Rear Drive Units (RDU) for AWD vehicles, along with Final Drive Units (FDU) for high performance rear wheel drive vehicles. Current activities also target the future supply of transmission and axle products for hybrid and electric vehicle drivetrains.
Getrag Driveline Products will be integrated into GKN Driveline. With operations in the United States and Europe, Getrag Driveline Products has a product, manufacturing and customer footprint that is complementary to GKN’s own geared product business, which is predominantly based in Asia. The combined businesses will be the leading global player in AWD driveline products.
Nigel Stein, CEO of GKN Driveline, stated, “This acquisition is a significant step forward for Driveline, accelerating our strategy for growth in AWD systems and hybrid/electric drivetrains. Production of AWD vehicles is forecast to grow at above market rates reflecting increasing demand globally for crossover vehicles and compact SUVs. Combining our engineering and technology resources will strengthen our ability to provide customers with leading-edge technology, fuel-efficient solutions and to develop next generation drivelines.”
As part of the overall transaction, GKN is also acquiring an exclusive licence, principally for Europe and the Americas, to Getrag’s electric drivetrain technology for use in electric and certain hybrid vehicles.
The acquisition cost comprises a cash consideration of £283 million for the equity at closing together with further deferred consideration of up to £12 million depending on Getrag Driveline Products’ success in achieving future business awards. Closing of the transaction is expected during September 2011.
Edited by: Paul Whittaker, Editor ipmd.net, [email protected]