GKN plc has agreed the sale of its Stromag business, part of the GKN Land Systems division, to Altra Industrial Motion Corp 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.
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).
‘I would like to thank the Stromag team for their dedication over the past five years,’ said Nigel Stein, chief executive of GKN. ‘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.’
This story is reprinted from material from GKN, with editorial changes made by Materials Today. The views expressed in this article do not necessarily represent those of Elsevier.
