British engineering giant GKN acquires Stromag Holding

British engineering giant, GKN has closed a £174-million cash deal to take over German engineering firm Stromag Holding GmbH.

Founded in 1932, engineering products maker Stromag has a portfolio of industrial power management components, including hydraulic clutches, electro-magnetic brakes and flexible couplings.

Its products are used in agricultural and construction machinery, diesel engines and gensets for stationary applications and ship's drives, or operate on the sectors for crane and conveyor technologies, renewable energies.

The privately held company, whose shareholders include private equity firm Equita and a large number of other organisations and individuals, including its own management, has operations in Germany, France, US, Brazil, India and China.

It recorded sales of €111 million and a pre-tax profit of €10 million in the year ended 31 December. Its gross assets were €103 million last year.

The acquisition cost comprises £146 million in cash and repayment of debt of £28 million.