GKN plc, London, United Kingdom, has signed an agreement to acquire Stromag Holding GmbH, Unna, Germany, a privately held manufacturer of hydraulic clutches, electro-magnetic brakes, and flexible couplings used in agricultural equipment, construction, and mining machinery. GKN expects the transaction, worth 164 million euros (about $230 million) for the equity and repayment of debt of 31 million euros (about $44 million), to be finalized in September.
Stromag’s 2011 sales are projected at approximately 140 million euros (about $197 million). “The acquisition of Stromag is an important step in the implementation of the GKN Land Systems strategy to build a global leader in industrial power management, extending our capability in electro-mechanical components,” said Andy Reynolds, executive director, GKN plc.