Boston, MA -- (SBWIRE) -- 08/05/2011 -- C.W. Downer & Co. is pleased to announce that GKN plc has signed an agreement to acquire Stromag Holding GmbH from Equita Holding GmbH. The acquisition costs are comprised of a cash consideration of €164 million for the equity and repayment of debt of €31 million.
GKN is a global engineering group with design and manufacturing capabilities in the automotive, powder metallurgy, land systems and aerospace sectors. The transaction was announced on July 17, 2011 and is expected to close in September of this year, subject to customary conditions and regulatory approvals.
Based in Unna, Germany, Stromag is a privately-held engineer of industrial power management components, including hydraulic clutches, electro-magnetic brakes and flexible couplings.
The company's solutions are utilized by the agricultural, construction, mining, renewable energy and metal processing industries, amongst others. Stromag's global operations in Germany, France, the United States, Brazil, India and China will be incorporated into GKN's Land Systems division.
Andy Reynolds Smith, Executive Director, GKN plc, said in a company statement, "The acquisition of Stromag is an important step in the implementation of the GKN Land Systems' strategy to build a global leader in Industrial Power Management, extending our capability in electro mechanical components. In combination with our existing business, it will provide a strong platform to accelerate growth in existing markets, together with access to a number of attractive new industrial segments including renewable energy."
The C.W. Downer transaction team who advised on the acquisition included Frank Merkel (Managing Director & Partner), Ulrich Müller (Managing Director), Raymond Morin (Vice President), and Stefan Meier (Analyst), all based in the firm's Frankfurt office.
About C.W. Downer & Co.
C.W. Downer & Co. is an independent, global investment bank offering middle-market clients a high level of personal attention coupled with 35 years of international execution experience. We provide insight, not just information. We generate value, not just transactions. With seven fully integrated offices on four continents, we consistently identify the most appropriate strategic buyer and uncover “hidden” acquisition targets. C.W. Downer & Co. delivers the reach of a bulge-bracket investment bank with the senior level focus of a boutique. For more information, visit http://www.cwdowner.com.