gnx
28-07-11, 08:47
LONDON (Dow Jones)--GKN PLC (GKN.LN), a global engineering business serving the automotive, aerospace and land systems markets, said Thursday it is buying the all-wheel-drive components businesses of Getrag KG, the privately held German company controlled by the Hagenmeyer family for up to GBP295 million,
MAIN FACTS:
GKN will pay GBP283 million in cash for the equity at closing together with
further deferred consideration of up to GBP12 million depending on Getrag
Driveline Products' success in achieving future business awards.
Getrag Driveline Products has net cash of GBP15 million and therefore the current enterprise value, including the deferred element, is GBP280 million.
Closing of the transaction is expected during September, subject to
customary conditions and necessary regulatory approvals.
Acquisition will be funded from the Group's existing resources.
Core business of Getrag Driveline Products is the Tier 1 supply of geared
driveline products, namely Power Transfer Units and Rear Drive Units for AWD
vehicles, along with Final Drive Units for high performance rear wheel drive
vehicles.
GKN is also acquiring an exclusive license, principally for Europe and the
Americas, to Getrag's electric drivetrain technology for use in electric and
certain hybrid vehicles.
For the year ended Dec. 31, 2010, Getrag Driveline Products achieved
consolidated sales of GBP380 million, EBITDA of GBP50 million, profit before
tax of GBP25 million and gross assets were GBP250 million.
Transaction is expected to be earnings enhancing on a management basis from the first full year of ownership.
Strong growth in Getrag Driveline Products is expected from 2014, as recent
new program wins enter production.
Shares closed Wednesday at 2266 pence valuing the company at GBP3.52billion.
032: (END) Dow Jones Newswires
033: July 28, 2011 02:31 ET (06:31 GMT)
034: <<TKWD>>dGKN.LN,dGKNLY
035: <<TKWD>>ISIN=GB0030646508,ISIN=US3617556069
MAIN FACTS:
GKN will pay GBP283 million in cash for the equity at closing together with
further deferred consideration of up to GBP12 million depending on Getrag
Driveline Products' success in achieving future business awards.
Getrag Driveline Products has net cash of GBP15 million and therefore the current enterprise value, including the deferred element, is GBP280 million.
Closing of the transaction is expected during September, subject to
customary conditions and necessary regulatory approvals.
Acquisition will be funded from the Group's existing resources.
Core business of Getrag Driveline Products is the Tier 1 supply of geared
driveline products, namely Power Transfer Units and Rear Drive Units for AWD
vehicles, along with Final Drive Units for high performance rear wheel drive
vehicles.
GKN is also acquiring an exclusive license, principally for Europe and the
Americas, to Getrag's electric drivetrain technology for use in electric and
certain hybrid vehicles.
For the year ended Dec. 31, 2010, Getrag Driveline Products achieved
consolidated sales of GBP380 million, EBITDA of GBP50 million, profit before
tax of GBP25 million and gross assets were GBP250 million.
Transaction is expected to be earnings enhancing on a management basis from the first full year of ownership.
Strong growth in Getrag Driveline Products is expected from 2014, as recent
new program wins enter production.
Shares closed Wednesday at 2266 pence valuing the company at GBP3.52billion.
032: (END) Dow Jones Newswires
033: July 28, 2011 02:31 ET (06:31 GMT)
034: <<TKWD>>dGKN.LN,dGKNLY
035: <<TKWD>>ISIN=GB0030646508,ISIN=US3617556069