Manufacturer and marketer of electromechanical power transmission and motion control products Altra Industrial Motion Corp. said it has closed its acquisition of the Stromag business from GKN plc.
“Stromag provides Altra with complementary products, increased presence in key geographic regions and penetration into new growth end markets,” said Carl Christenson, Chairman and CEO of Altra. “It has a strong reputation, and its highly engineered clutches, brakes, torsional couplings and limit switches serve as excellent product extensions for Altra.”
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 totaling 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.
The acquisition will see more than 700 Stromag employees transition to Altra.