SKF has completed the previously announced divestments of its fly-by-wire business to Lord Corporation and its Kaydon velocity control business to Stabilus.
The total consideration of the fly-by-wire divestment is €39 million, while the total consideration of the Kaydon velocity control divestment is US$339 million. Both transactions are on a cash and debtfree basis. The cash flow impact from these two divestments, net after tax payment, is estimated at around SEK 2 800 million. The net income effect is estimated at around SEK -350 million, which refer primarily to tax costs. These will be accounted for during Q2 2016.
The fly-by-wire business, which manufactures cockpit control systems, sensors, dampers and electromechanical actuators had annual sales in 2015 of €37 million, and 150 employees.
The Kaydon velocity control business, which includes the ACE, Hahn Gasfedern, Fabreeka and TechProducts brands, had sales in 2015 of approximately US$120 million and 550 employees.
This story is reprinted from material from SKF, with editorial changes made by Materials Today. The views expressed in this article do not necessarily represent those of Elsevier.