GKN plc (“GKN”) has announced that it has agreed the sale of its Stromag business (part of the GKN Land Systems division) to Altra Industrial Motion Corp. for a cash consideration of €184 million (£164 million) and the transfer of debt-like obligations of approximately €14 million (£13 million) for a total enterprise value of €198 million (£177 million).
Completion of the transaction is expected to take place in the first quarter of 2017 subject to the conclusion of Works Council consultation and information procedures in France and Germany and merger control clearance in Germany.
Stromag supplies brakes, clutches and highly flexible couplings to the agricultural, construction, industrial and renewable energy markets. Total sales in 2015 were €131 million (£117 million).
Nigel Stein, Chief Executive of GKN, said:
“I would like to thank the Stromag team for their dedication over the past five years. Stromag has been a good investment for GKN despite challenging end markets and I am confident that Altra is an excellent home for the business. Altra is well positioned to invest in the business to meet the future growth opportunities in its markets. For GKN this sale helps sharpen our focus and allows us to redeploy capital into our core aerospace and automotive businesses.”
GKN
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