GKN to acquire Getrag's driveline products business
29 July 2011
Global engineering group GKN plc today announces its agreement to acquire the all-wheel-drive (AWD) components businesses of Getrag KG, the privately held German company controlled by the Hagenmeyer family.
The acquisition comes barely 10 days after GKN announced that it had signed an agreement to acquire the entire stake of privately held Stromag Holding GmbH (Stromag), to acquire the entire business for €164 million plus assumption of €31 million of debt. Stromag, which will be integrated into GKN Land Systems division, is a market leading engineer of industrial power management components with a strong technology base
The Getrag businesses being acquired, under the umbrella 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 and rear drive units for all wheel drive (AWD) vehicles, along with final drive units 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, which will be integrated into GKN Driveline, is an excellent fit with GKN's existing range of products and technology. 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 with an excellent customer base and product portfolio.
"This acquisition is a significant step forward for Driveline, accelerating our strategy for growth in AWD systems and hybrid / electric drivetrains," says Nigel Stein, CEO of GKN Driveline.