Altra Industrial Motion Corp. has announced that on 30 December 2016 it closed on the acquisition of the Stromag business from GKN plc. Stromag generated approximately 131 million euros in revenue in 2015, and the acquisition is anticipated to be accretive to Altra’s earnings in 2017, excluding any one-time or acquisition-related costs.
The acquisition cost comprised the assumption of debt totalling approximately 14 million euros and a cash consideration of approximately 184 million euros and is subject to normal adjustments related to working capital and other reconciling items.
Carl Christenson, Chairman and CEO of Altra, says: “Stromag provides Altra with complementary products, increased presence in key geographic regions and penetration into new growth end markets. It has a strong reputation, and its highly engineered clutches, brakes, torsional couplings and limit switches serve as excellent product extensions for Altra. We are excited to welcome the more than 700 Stromag employees to the Altra family.”
Further information about Altra Industrial Motion can be found at www.altramotion.com.