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Maritime Propulsion

March 7, 2024

Twin Disc Inks Deal to Acquire Katsa for $23 Million

(Photo: Twin Disc)

U.S. based power transmission equipment manufacturer Twin Disc announced it has entered into a definitive agreement to acquire Katsa, a Finnish-headquartered manufacturer of power transmission components and gearboxes for industrial and marine markets, in an all-cash transaction valued at €21 million (approximately $23 million).

The transaction is expected to close in the first half of calendar year 2024, subject to customary closing conditions, including regulatory approval, Twin Disc said in a statement.

Twin Disc said the acquisition will broaden its global reach through further expansion into growing European markets, while also adding complementary products to grow offerings in the industrial, marine and hybrid/electrification space. For the fiscal year ended September 30, 2023, Katsa delivered approximately €33 million of revenue.

“Katsa Oy is a well-established business with a solid reputation for quality in addition to its strong in-house manufacturing and engineering capabilities. This acquisition is an excellent opportunity to expand Twin Disc’s global presence, leveraging Katsa’s longstanding relationships with leading European OEMs to introduce our portfolio into new, growing markets,” said John H. Batten, president and CEO of Twin Disc. “We look forward to welcoming the Katsa team to Twin Disc and are confident in our ability to work together to drive sustained growth while solidifying our position as a leading provider of hybrid and electrification solutions.”

Tomi Koskinen, CEO of Katsa, said, “We are excited to join another well-known company like Twin Disc which can provide synergies and new products to create new growth opportunities for Katsa. I look forward to continuing to lead the Katsa operation after the completion of the transaction and expanding our partnership with our loyal customers to position the business for long-term success under the Twin Disc brand.”