Engineering giant GKN has agreed a £280 million deal to take over a German automotive components business.
The Redditch-based company will acquire the all-wheel-drive components arm of Getrag KG, the privately held German company, controlled by the Hagenmeyer family.
The businesses being acquired, being referred to as Getrag Driveline Products, are Getrag Corporation, a joint venture with Dana Corporation based in the US, and Getrag All Wheel Drive AB, a joint venture with Dana Holding Corporation and Volvo Car Corporation in Sweden.
Nigel Stein, chief executive of GKN Driveline, said the company was an “excellent fit” with GKN’s existing range of products and technology.
He said the deal was a valuable part of plans to boost its standing in the all-wheel drive (AWD) market.
He said: “This acquisition is a significant step forward for Driveline, accelerating our strategy for growth in AWD systems and hybrid/electric drivetrains.
“Production of AWD vehicles is forecast to grow at above market rates reflecting increasing demand globally for crossover vehicles and compact SUVs.
“Combining our engineering and technology resources will strengthen our ability to provide customers with leading-edge technology, fuel-efficient solutions and to develop next generation drivelines.”
For the last audited year ended December 31, Getrag Driveline Products achieved consolidated sales of approximately £380 million, with a pre-tax profit of £25 million. Total gross assets stood at £250 million.
