GKN agrees sale of Stromag for €198m

21st Oct 2016 14:06

(ShareCast News) - Engineering group GKN has agreed the sale of its Stromag business to Altra Industrial Motion for an enterprise value of €198m (£177m).This includes €184m (£164m) in cash and the transfer of debt-like obligations of around €14m (£13m).GKN said the deal, which is expected to take place in the first quarter of next year, will allow it to redeploy capital into its core businesses.Stromag supplies brakes, clutches and highly-flexible couplings to the agricultural, construction, industrial and renewable energy markets. In 2015, it generated total sales of €131m (£117m).Chief executive Nigel Stein said: "Stromag has been a good investment for GKN despite challenging end markets and I am confident that Altra is an excellent home for the business. Altra is well positioned to invest in the business to meet the future growth opportunities in its markets. For GKN this sale helps sharpen our focus and allows us to redeploy capital into our core aerospace and automotive businesses."At 1517 BST, the shares were up 0.3% to 324.10p.